The Murugappa Group has entered into an agreement to acquire the German specialty chemicals company Hubergroup for an enterprise value of $310 million.
The acquisition will expand Murugappa’s presence in the global print and packaging sector, strengthening its foothold in a competitive industry.
Details of the Deal
Murugappa, in partnership with Avenue Capital Group, will acquire full ownership of Hubergroup from Cornelius Treuhand Holding.
The deal involves refinancing Hubergroup’s $160 million debt and a $150 million equity infusion from Murugappa, along with additional working capital.
Challenges and Delays
The acquisition faced delays due to legal issues in Germany. Initially planned for early 2024, the transaction was postponed, with lenders extending the repayment deadline to December 2024.
In the interim, lenders appointed a trustee and management consultant to oversee refinancing efforts and explore strategic equity investors to replace MHM Holding GmbH’s debt.
Market Presence
Hubergroup India dominates the Indian printing industry, holding a 30% market share and catering to leading print media houses, packaging firms, and FMCG clients.
Established in 1991 by the Bilakhia Group, the company became a subsidiary of Germany’s Hubergroup, which achieved near-total ownership in 2023.
Hubergroup India manufactures essential ink components such as adhesives, resins, and pigments at its facilities in Vapi, Daman, and Silvassa.
Around half of its products serve the Indian market, with the remainder exported globally to regions including the US, Australia, and Thailand.
Strategic Expansion
The Murugappa Group, a diversified Indian conglomerate, has interests spanning agriculture, engineering, and financial services.
Its portfolio includes listed entities such as CG Power & Industrial Solutions, Cholamandalam Financial Holdings, and Tube Investments of India.
As reported by etnownews.com, with this acquisition, Murugappa aims to strengthen its global operations. The focus is particularly on the high-growth print and packaging segment. The company plans to leverage Hubergroup’s established market presence and production capabilities.
