Coromandel International announces acquisition of 53% stake in NACL Industries

For a consideration of Rs 820 cr

Coromandel International announced the signing of definitive agreements to acquire majority stake in NACL Industries (NACL).

NACL is an India based Crop Protection player having strong branded formulation business in domestic markets, exports Technicals in key global geographies and has presence in contract manufacturing operations with global multinational agrochemical companies.

Coromandel is set to acquire 53% shareholding in NACL industries, for consideration of Rs 820 crore at Rs 76.7/- price per share from the current promoter KLR Products. Coromandel also proposes to make an open offer to the public to acquire upto 26% of the equity share capital of the company as per the SEBI Takeover Regulations. The proposed transaction is subject to regulatory approvals and is likely to be consummated over next few months.

The proposed acquisition will position Coromandel as one of the leading players in the Indian Crop Protection industry with a wide range of technicals and pan India presence in domestic formulation business. This will also help in expanding Coromandel's scale, accelerating its entry into contract manufacturing business, fast-tracking new product commercialization and expanding its product portfolio.

NACL Industries operates Technical and Formulation plants in Andhra Pradesh, besides having centralized R&D facility near Hyderabad. NACL's subsidiary has also recently invested in Technical grade facility at Dahej, capable of manufacturing Active Ingredients. It has established formidable partnerships with key global players, offering contract manufacturing services for over two decades. The company has strong brand presence in domestic formulations segment with pan India footprint.

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