Vivimed Labs to acquire UK chemicals company

Vivimed Laboratories is acquiring James Robinson, a subsidiary of UK-based global chemicals major Yule Catto & Co.

James Robinson, which has operating facilities in the UK, Germany and Vapi (Gujarat), is a speciality chemicals manufacturer and manufactures hair dyes, photographic chemicals and pharmaceutical intermediates.

According to sources, Vivimed acquired the company for about $30 million.

Yule Catto, which took over the company in 1998, was divesting its stake to pay off debt, they said.

Vivimed Labs today informed the bourses that its board of directors last week considered the proposal for acquisition of James Robinson shares, subject to sanctions from concerned authorities and shareholders.

"The acquisition will help us gain a global footprint and new customers in manufacturing of speciality chemicals, especially hair dyes. It will also add new business avenues such as chemicals for the photography industry," said Santosh Varalwar, managing director and promoter of Vivimed Labs.

Vivimed plans to launch about 12 new products in the skin care and hair dye segments, including a unique skin tanning product (di-hydroxi acetone), developed in association with JNT University, Hyderabad, and a sun screen UVB absorber (octocrylene), an ascorbic acid derivative for skin care and speciality chemicals for hair dyes, he said.

Vivimed is also planning a large scale greenfield chemical complex at a 50-acre location in Sri Sailam Road near Visakhapatnam with an investment of over Rs 200 crore.