German pigments maker Heubach Group sold to India’s Sudarshan Chemical

Iranpolymer/Baspar Sudarshan Chemical Industries Ltd. of India is acquiring German pigments maker Heubach Group in a deal valued at 127.5 million euros ($139 million).

In a news release, officials with SCIL in Maharashtra said the acquisition “will create a global pigment company, combining SCIL’s operations and expertise with Heubach’s technological capabilities.”

The sale comes six months after Langensheim-based Heubach started insolvency proceedings. Officials said at the time the filing was made because of potential over-indebtedness following rapid change in financial markets in the past two years.

They added the firm was unable to achieve a financial restructuring with all shareholders and lenders. Under German law, over-indebtedness occurs if the debtor’s assets — based on liquidation values — no longer cover its liabilities.

With the sale to SCIL, officials with that firm said the combined business will have a broad pigment portfolio and a strong presence in major markets including Europe and the Americas. A combined SCIL/Heubach will operate 19 sites globally. The transaction is expected to close early next year.

“We will carefully integrate these two companies to create a truly global pigments company, with Frankfurt remaining a strategically important location,” SCIL Managing Director Rajesh Rathi said.

“SCIL is known for its agility and efficiency, and we will embed this culture throughout the combined company to make it one of the most customer-centric and profitable pigment companies.”

Heubach traces its roots to 1806, when Goslaer Farbenfabrik began making pigments in Goslaer, Germany. Heubach posted sales of 878 million euros ($959 million) in 2023, down 18 percent from 1.07 billion euros ($1.16 billion) in 2022.

SCIL officials said Heubach faced financial challenges over the past two years from rising costs, inventory issues and high interest rates. They added the acquisition “will address these challenges with a clear turnaround plan.”

SCIL is a global supplier of color effects and pigments for plastics and other markets. The publicly held firm posted operating profit of $307 million in the year ended March 31.

In 2021, Heubach, in partnership with New York private equity firm SK Capital, acquired Clariant’s pigments business, which has operated since under the Heubach name.

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