The board of directors at speciality chemical firm BASF India on Friday approved the acquisition of 100 per cent stake in BASF Performance Polyamides from BASF Nederland BV and BASF SE for Rs 305 crore.
The acquisition of BASF Performance Polyamides will strengthen the company's position as a solution provider for key industries and enhance market access to key growth markets, said BASF India in a statement.
"It will help the company in expanding its existing materials segment and extend the value chain through backward integration into key raw materials. The polyamides business also has operational synergies with the engineering plastics business of the company."
The closing of the transaction is expected in the second quarter of the current financial year. The board took into consideration the valuation report issued by Deloitte Touche Tohmatsu India LLP.
BASF Performance Polyamides was incorporated on January 31, 2011 and is into the business of manufacture and trading of performance polyamides. It has a manufacturing site at Panoli in Gujarat.
The company has a wide range of engineering plastics and serves automobiles, electrical and consumer goods. The audited aggregate revenue (operations and other income) of BASF Performance Polyamides for the past three financial years FY17, FY18 and FY19 was Rs 131 crore, Rs 174 crore and Rs 247 crore respectively.
( With inputs from ANI )