Agri boost deal: Coromandel to buy 53% stake in NACL for Rs 820 crore

CHENNAI: Agri-solutions provider Coromandel International Ltd, on Wednesday announced the signing of definitive agreements to acquire majority stake in NACL Industries Ltd (NACL).

NACL is a crop protection player having strong branded formulation business in domestic markets, exports Technicals in key global geographies and has presence in contract manufacturing operations with global multinational agrochemical companies.

Coromandel is set to acquire 53% shareholding in NACL industries, for consideration of Rs 820 crore at Rs 76.70 price per share from the current promoter KLR Products Limited.

Coromandel also proposes to make an open offer to the public to acquire upto 26 per cent of the equity share capital of the company as per the SEBI Takeover Regulations.

The proposed transaction is subject to regulatory approvals and is likely to be consummated over next few months.

The proposed acquisition is expected to position Coromandel as one of the leading players in the Indian crop protection industry with a wide range of technicals and pan-India presence in domestic formulation business. This will also help in expanding Coromandel’s scale, accelerating its entry into contract manufacturing business, fast-tracking new product commercialisation and expanding its product portfolio.

Coromandel’s executive chairman Arun Alagappan said, “This is a defining moment for Coromandel International’s crop protection business. The acquisition not only expands our scale but also enables us to tap into critical customer segments and secure strategic CDMO relationships.” Coromandel’s managing director and CEO Sankarasubramanian added,“This acquisition will strengthen Coromandel’s presence in crop protection business both in domestic and export markets.”