IMCD to acquire Indian speciality chemicals distributor Signet
15 September 2020 - 5:42PM
IMCD to acquire Indian speciality chemicals distributor Signet
ROTTERDAM, The Netherlands (15 September
2020, 17:42 CET) - IMCD N.V. (“IMCD” or
the “Company”), a leading global distributor of
speciality chemicals and food and pharma ingredients, today
announces that it has signed an agreement to acquire 100% of Signet
Excipients Private Limited (“Signet”), one of the
leading distributors of excipients in India. Signet is well aligned
with the IMCD business model and strategy and provides a
significant platform for further growth in India and the
Asia-Pacific region.
Founded in 1986, Signet grew from a small
distribution company to one of the leading distributors of
excipients in India. It focusses on the distribution of
pharmaceutical, nutraceutical and bio-pharma excipients across
categories such as diluents, fillers, sweeteners, disintegrants,
binders, surfactants and others. Based in Mumbai, Signet is also
active in India, Bangladesh, the Middle East and Africa. Signet
currently serves more than 900+ customers, with 400+ products from
the world’s leading excipient producers. With approximately 100
employees, Signet generated revenue of INR 13.2 billion (ca. EUR
152 million) in the last twelve months up to and including June
2020, and realised a normalised EBITA of INR 3.4 billion (ca. EUR
39 million).
The transaction will take place in two tranches,
with IMCD now acquiring 70% of the share capital from the founders
and the remaining 30% by 2024. The transaction is expected to have
high single digit cash EPS accretion in the first full year post
acquisition. The founders of Signet will continue to lead the
company post completion of the first tranche.
With its asset light business model and
long-term relationships with leading tier 1 global excipient
producers, the acquisition of Signet by IMCD has a strong strategic
rationale. It is an important step in IMCD’s strategy to become a
leading global speciality pharma ingredient distributor and
strengthens IMCD’s footprint in the high growth and resilient
pharma excipient distribution market. It furthermore significantly
strengthens IMCD’s presence in India and increases IMCD’s position
in the high-growth APAC region.
Piet van der Slikke, CEO of IMCD commented: “As
India is the largest supplier of generic medicines globally, it is
our ambition for our pharmaceutical business to have a strong
presence there. Hence, I am pleased that Signet and IMCD will now
join their activities in India, Bangladesh, the Middle East and
Africa.”
Harish Shah, founder and managing director of
Signet, adds: “IMCD is an excellent partner for Signet, not only
due to the similarity of our principals but moreover the culture of
growth through deep market knowledge, technical innovation and
highest levels of service. We look forward to being a strategic
part of IMCD’s global pharmaceutical business.”
The closing of the transaction is subject to
customary closing conditions and regulatory approval, and is
expected to take place in the last quarter of 2020.
Piet van der Slikke (CEO) and Hans Kooijmans
(CFO) will host a conference call later today, at 18:15 PM CET. The
presentation used in the call and an audio replay of the call will
be made available on the website www.imcdgroup.com/investors.
This press release contains information that
qualifies as inside information within the meaning of Article 7(1)
of the EU Market Abuse Regulation.
Attached, please find the press release in pdf
format.
- IMCD to acquire Indian speciality chemicals distributor
Signet
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