Murugappa Group To Acquire Hubergroup For US$ 310 Million
Chennai-based Murugappa Group has finalized an agreement to acquire Hubergroup, a German specialty chemicals firm, for an enterprise value of US$ 310 million. The acquisition, which includes an equity infusion of US$ 150 million from Murugappa and US$ 160 million for debt refinancing, marks a strategic move to strengthen the group’s presence in the global print and packaging sector.
The deal, confirmed this week, will give Murugappa, along with investment partner Avenue Capital Group, full ownership of Hubergroup from Cornelius Treuhand Holding, pending regulatory approvals. Despite intense competition in the bidding process from entities like Edelweiss and Jindal Poly Films, Murugappa’s consortium was selected as the preferred bidder.
Hubergroup, a market leader in the Indian printing industry with a 30% market share, provides products to key print media houses, packaging and FMCG sectors. The company manufactures ink components like adhesives, resins and pigments at plants in Vapi, Daman and Silvassa, and supplies globally through subsidiaries in the US, Australia and Thailand.
The acquisition comes after a series of financial restructuring efforts by Hubergroup, which last month was reported to be seeking new debt to purchase equity from its parent company, MHM Holding GmbH, for around Rs 1,350 crore. The transaction, initially planned for early 2024, was delayed due to legal issues in Germany but is now set to proceed after lenders extended repayment terms to December 2024.
Murugappa Group, known for its diversified business interests in agriculture, engineering and financial services, operates listed companies including CG Power & Industrial Solutions, Cholamandalam Financial Holdings, and Tube Investments of India.
