ET had first reported in November that Everstone Capital is in talks to acquire Calibre Chemicals in a deal that could value the company upward of Rs 1,000 crore.
JM Financial has advised the promoters for the stake sale.
Founded in 1984 by Ranjit Bhavnani, Calibre is a leading specialty ingredients player in iodine derivatives, persulfates and prchlorates. Exports of chemicals accounted for around 60% of total revenue of Calibre Chemicals. About 35% of Calibre’s revenue is generated from European markets, 25% from the US, 30% from India and rest from other markets.
For the nine months ended December 31, 2019, the company reported PAT of Rs 61.56 crore on operating income of Rs 324 crore. For FY19, Calibre posted a revenue of Rs.397 crore, with a PAT of Rs.49 crore.
“Combining the founding family’s entrepreneurial skills and strong governance with Everstone’s operational expertise and experience, we expect Calibre to excel, innovate and scale,” said Sameer Sain, Co-founder and CEO, Everstone Group.
“This is a game changer moment for us at Calibre and it marks the transformation of the company from a family-owned to a professional one where we will continue to participate actively,” said Ranjit Bhavnani, Founder, Chairman and MD, Calibre.
Specialty Chemicals has been one of the favourite sectors of or PE investors in India. In July, Premji Invest had acquired a controlling stake in Vadodara-based Best Value Chem (BVC), makers of specialty aroma chemicals.
Indian chemicals manufacturers are expected to deliver better future growth as the global firms keep looking to de-risk their dependence on supply from China.