Chennai, Dec 18 : Germany-based chemical distribution major Brenntag on Monday said has signed an agreement with promoters of Raj Petro Specialities Pvt Ltd to acquire 65 per cent stake in it.
"The enterprise value of Raj Petro has been arrived at euro 92 million (approx (Dollar) (Dollar) 82.57 mn).
The acquisition is a further step into the Indian chemical distribution market which is the seventh largest globally for chemicals and third largest for lubricants," Brenntag Group CEO Steven Holland told reporters here.
According to the Group's President (and) CEO, Asia Pacific, Henri Nejade, the Indian business for the company is around euro 70 million and with the acquisition of Raj Petro, the total business for the German company out of India will be around euro 250 million by March 2018.
The German company, which is present in 74 nations, closed 2016 with a sales of euro 10.5 billion.
The Rs 1,190 crore turnover Raj Petro, a closely-held company, has a portfolio of petroleum related products, servicing a variety of product groups like transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents and industrial and automotive lubricants.
According to Amit Nanavati, Director in Raj Petro, the balance 35 per cent stake in the company will be acquired by Brenntag after five years with a provision to extend the time limit by one or two more years.