9 February 2016
BDA advises OMNOVA Solutions on sale of OMNOVA India to Apcotex Industries
Divested Indian emulsion polymer business to Apcotex Industries
BDA Partners is pleased to announce that its client, OMNOVA Solutions Inc. (NYSE: OMN) a global leading provider of emulsion polymers and specialty chemicals, has sold its rubber manufacturing business in India to Apcotex Industries Limited (“Apcotex”), an India-based leading provider of a range of emulsion polymers. BDA was the exclusive advisor to OMNOVA on this transaction.
OMNOVA’s India business is the sole manufacturer of acrylonitrile butadiene rubber (NBR) and one of the two manufacturers of high styrene rubber (HSR) in India. It has over 20% market share in India in NBR and HSR and longstanding customers in automotive, rice rolls, conveyor belts, hoses, cables and other industrial applications.
The transaction includes the manufacturing plant and its associated product lines: NBR in bale form, high styrene rubber masterbatches, and NBR-PVC polyblends in Valia, India. OMNOVA Solutions will maintain its sales office in Mumbai to manage the continued growth of the Company’s specialty polymers in the Indian market, through imports from other OMNOVA facilities in Asia, Europe, and North America.
Apcotex acquired 100% stake from OMNOVA and will further invest in the operations and support the key employees in new growth initiatives. Apcotex brings synergies with the rest of its product portfolio. With this acquisition, Apcotex will be the largest manufacturer of NBR and HSR in India.
Euan Rellie, Co-Founder and Senior Managing Director at BDA, said, “We’re pleased to demonstrate again our global chemical capabilities, and ability to effect divestures for multinationals across Asia. We have now been involved in three transactions over the years involving this asset. The Indian M&A market is seeing increasing activity, and BDA is well placed in that market. We’re pleased to be the mid-market, cross-border M&A advisor of choice for exacting clients such as OMNOVA.”
About OMNOVA Solutions
OMNOVA Solutions is a global innovator of performance-enhancing chemistries and surfaces used in products for a variety of commercial, industrial and residential applications. As a strategic business-to-business supplier, OMNOVA provides The Science in Better Brands, with emulsion polymers, speciality chemicals, and functional and decorative surfaces that deliver critical performance attributes to top brand-name, end-use products sold around the world. www.omnova.com
About Apcotex Industries Ltd
Apcotex was established in 1980 and is a stock market listed company, based in Mumbai. Apcotex manufactures and markets a range of emulsion polymers in India and internationally. Its product portfolio includes VP latex, carboxylated and non-carboxylated SB latexes, acrylic latexes, nitrile latex and synthetic rubber. Manufacturing plants strategically located at Taloja (Maharashtra) along with a strong in-house Research & Development base. www.apcotex.com
BDA Partners is a leader in cross-border investment banking involving Asia. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996. BDA has a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe, and Asia. BDA is headquartered in New York with offices in London, Dubai, Mumbai, Ho Chi Minh City, Hong Kong, Shanghai, Beijing, Seoul, and Tokyo. BDA was named M&A Advisory Firm of the Year at The ACG Champions Awards in 2015. BDA formed a partnership with William Blair & Company in 2011.
BDA carries out its US securities business through BDA Advisors Inc, a broker-dealer registered with the US Securities and Exchange Commission (SEC) and a member of FINRA and SIPC. BDA’s UK subsidiary is authorised and regulated by the Financial Conduct Authority.
Divested Amazon Papyrus Chemicals Group to The Longreach Group
Divested China phenolic resins plant to Red Avenue
Divested Epolin Chemicals to Chroma Color
Divested Asian electronic cleaning chemicals business to Nippon Kayaku
Divested Chrysal International to OAT Agrio Ltd
Divested plant health business in Japan to Nisso
Equity capital raise and new Asian partnerships
Cristal (Saudi Arabia) agreed to acquire Jiangxi Tikon TiO2 (China)
Sold stake in An Giang Plant Protection to Standard Chartered
Divested a majority stake to Navis Capital Partners
Acquired the organic pigment business of Jiangsu Multicolor
Divested Continuous Filament Mat business to Stonewood Capital
Divested Shanghai subsidiary to CPIC, China
Acquired Changzhou Pulanna Coating Co Ltd
Divested Kiian SpA, a specialty inks manufacturer, to Wise and Alcedo
Divested building materials business of Henkel Korea to Mapei of Italy
Acquired Lablndia distribution business in India
Divested Eliokem to Omnova
Divested Clariant Masterbatches (Korea) Ltd to Dong Bang Chemical
Divested Arkema Guangzhou Chemicals to Hoe Seng Co