India’s Rain Commodities buys Triton-owned Rütgers
Indian industrial group Rain Commodities has agreed to buy Rütgers, a German chemicals producer, from Northern Europe-focused private equity firm Triton. With an enterprise value of EUR702 million ($918 million), the deal is by some distance the largest ever acquisition in Germany by an Indian company.
The transaction is still subject to regulatory approval and is expected to close in the first quarter of 2013.
Founded in 1849, Rütgers is Europe's leading producer of coal tar chemicals. It employs 1,000 staff across eight production facilities. Triton acquired the asset from German chemicals maker Evonik in 2008 and has seen revenue rise 25% during its ownership period. Rütgers is said to be targeting EBITDA of EUR90-100 million for the current financial year, on sales of EUR900 million.
"We are pleased with the development of Rütgers under the four and-a-half years of Triton ownership," Peder Prahl, director of the general partner of Triton Fund II, said in a statement.
Rain is a major global producer of calcined petroleum coke, principally supplying the aluminum industry. It has plants in the US, India and China as well as three deep-water shipping terminals. Rütgers CEO Henri Steinmetz said the two companies have complementary products and geographic presences.
The deal comes just days after Indian Hotels, the country's biggest accommodation provider, launched a $1.86 billion takeover bid for Bermuda-based Orient-Express Hotels. The transaction is supported by Montezemolo & Partners, an Italian family-owned private equity firm, and various affiliates of Indian Hotels' owner, Tata Group.
Indian interest in high-quality German industrial assets has yet to match that of China. In September, Weichai Power, a Chinese automotive and equipment manufacturer, invested EUR738 million in Kion, a German forklift truckmaker backed by KKR and Goldman Sachs. Earlier in the year, Sany Heavy Industry, a Chinese construction-equipment maker, teamed up with CITIC Private Equity to acquire Putzmeister, a German manufacturer of high-tech concrete pumps.
Mandarin Capital Partners, a Sino-European private equity firm, plans to target advanced manufacturing and services companies across China and German-speaking parts of Europe when investing its second fund, which is nearing a EUR500 million first close.
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