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Coromandel in Rs 450-cr deal to buy Sabero

01 Jun 2011 Evaluate

Coromandel International, part of the $3.8-billion Murugappa Group, is acquiring 42.22 per cent stake in Gujarat-based crop protection products company, Sabero Organics, for about Rs 250 crore.Coromandel will make an open offer to acquire another 31 per cent stake from shareholders of Sabero, taking the total deal size to between Rs 400 and Rs 450 crore. It will fund the acquisition entirely from internal accruals. The company is acquiring the 42.22 per cent promoters' stake in Sabero at Rs 160 a share.

With the acquisition, Coromandel will be competing with major players such as Bayer's and United Phosphorous in the Rs 8,000 crore domestic crop protection products market, which is growing at 10-12 per cent annually. The combined turnover of Coromandel in the plant protection products segment will be Rs 1,000 crore, after the acquisition.

Sabero, which produces a variety of fungicides, herbicides, insecticides and speciality chemicals, clocked a turnover of Rs 413 crore last fiscal, with exports contributing Rs 220 crore. It is setting up a Rs 75 crore plant in Dahej for production of Synthetic Pyrethroids that have a strong export potential — the facility is likely to be ready by this fiscal. Sabero exports about 60 per cent of its production and has four subsidiaries in Brazil, Argentina, Australia and Europe. It also has 240 registrations for its key products in 50 countries.

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Coromandel Interntl. Share Price

2018.70 8.65 (0.43%)
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