Deal Closed | India Glycols Limited | Joint Venture With Clariant International Ltd

The details of the deal are as follows:

Sector: Manufacturing of speciality chemicals 

Announcement Date: 11 March 2021 

Name of Client: India Glycols Limited 

Investor Details: Clariant International Ltd (“Clariant”) | Switzerland  

Clariant International Ltd is a member of the Clariant group of entities, which is active in the field of developing, manufacturing, marketing and selling speciality chemicals and application solutions for consumer care and industrial markets globally. 

Transferor Details: India Glycols Limited (“IGL”) | India  

India Glycols Limited is engaged in the in business of manufacturing of glycols, glycol ethers and acetates, industrial gases, nutraceuticals and potable alcohol etc. 

Deal Description Transfer of IGL’s entire BioEO (Speciality Chemicals) Business, including the plant and various other assets, on a slump sale basis pursuant to a business transfer agreement to IGL Green Chemicals Private Limited (“IGL Green”). Post transfer of the BioEO Speciality Chemicals) Business, IGL and IGL Green have entered into a joint venture agreement with Clariant pursuant to which Clariant will enter into a business transfer agreement with IGL Green to transfer its business of distribution of products relating to ‘Industrial & Consumer Specialties’ and subscription of equity shares of IGL Green as part of the joint venture agreement, such that post-closing, Clariant holds 51% stake in IGL Green. 

Total Consideration: IGL will transfer the BioEO (Speciality Chemicals) Business to IGL Green for a consideration of approximately INR 646 crores (subject to adjustments) of which INR 454.9 crores will be paid on closing and the remaining INR 191 crores will be paid over a period of 3 years. Clariant will invest INR 587.74 crores for the subscription of shares to be issued by IGL Green. 

Team Members: Bharat Anand (Partner), Pashupati Nath (Partner), Pranjal Prateek (Principal Associate), Abhiroop De (Associate) and Yashodhara Chauhan (Associate) 

Role of Firm: The Firm advised IGL in relation to the structuring of the transaction, navigating through the approvals required to implement the transaction, drafting, negotiating, revising and finalizing various transaction documents (including the business transfer agreement, the joint venture agreement and various supply agreements and service agreement) and undertaking the anti-trust analysis of the transaction.