French polyamide supplier Rhodia signed a binding agreement to acquire PI Polymer, a compounder of engineering plastics based in India. The acquisition represents Rhodia's first plastics compounding capacity in India.
According to Rhodia, it has big plans for the polyamide market in India, with its intent to control more than 15% of the demand there for polyamide compounds by 2015. PI Polymer forecasts about $13 million in sales revenue for its fiscal year 2010/11. The acquisition price represents an estimated 2010/11 EBITDA multiple of around 7x. The transaction includes all of PI Polymer's assets, including its lone compounding facility that employs more than 80; its R&D capabilities, customer base and logistics network in India. Rhodia expects the transaction to be complete by the end of March 2011.