Avantha Group sells Solaris bromine biz for Rs 800 crore to US firm

Avantha group's Solaris Chemtech has agreed to sell its bromine manufacturing and distribution business to US-based Chemtura Corporation for $142 million (about Rs 800 crore) in cash, besides  other liabilities.

US-based Chemtura said in a statement that it has entered into a Business Transfer Agreement with Solaris ChemTech Industries Ltd and its parent company, Gautam Thapar-led Avantha Holdings Ltd, for the deal.

Solaris is India's largest manufacturer of bromine, a chemical product, and its derivatives, which are used as water purifier, disinfectants and to control algae and bacteria growth in industrial processes.

With an annual revenue of USD 3 billion, Chemtura makes and sells specialty chemicals, agrochemicals and pool, spa and homecare products across the world. 

The deal involves Chemtura acquiring from Solaris certain assets used in the manufacture and distribution of bromine and bromine chemicals for cash consideration of USD 142 million and the assumption of certain liabilities.     

The purchase price is subject to a post-closing net working capital adjustment and the acquisition is subject to usual and customary closing conditions, Chemtura said. 

This acquisition would help strengthen Chemtura's position in bromine, provide customers with increased security of supply through further diversification of its bromine supply sources and increase Chemtura's bromine and bromine derivative capacity by 10-15 per cent initially. 

The deal would also give access to substantial bromine reserves to fuel Chemtura's future global growth through increased access to a scarce natural resource. 

The acquisition is expected to close by the end of 2012 and the integration would take place in 2013, Chemtura said.

The bromine and bromine chemicals division of Solaris was established in the mid-1990s and has grown to be India's premier manufacturer of bromine.

The acquisition includes two manufacturing facilities, a research and development centre and a multi-products facility in Gujarat.