Deloitte acted as financial advisor to the insolvency administrator and the lenders group in the sale of Heubach group to Sudarshan Chemical Industries Ltd.
A German joint cross-functional Deloitte team from Turnaround & Restructuring, led by Stefan Weniger, and Corporate Finance Advisory, led by Alexander C. Bielig, provided full-scope M&A services to the insolvency administrator of HEUBACH, Dr. Andreas Kleinschmidt (White & Case), as well as the lenders group in cooperation with Lazard in the sale of the HEUBACH group to Sudarshan Chemical Industries Ltd. (“SCIL”). The project was co-managed by Werner Warthorst, Tanuj Huhn, Raphael Bringezu Andreas Kopp, and Christoph Madea, with the support of Felix Brache, Jannik Harant, Benedict Zachmann, and Ferdinand Moser. Throughout the process, Alexander Keller from Deloitte Consulting contributed as Chemicals expert complementing the triad of Turnaround, M&A, and Industry expertise.
Beyond the M&A mandate, several additional operational engagements were provided around the continuation of operation, planning & controlling as well as tax services involving Deloitte teams in Germany, India, and Luxembourg. McDermott and Gibson Dunn were acting as legal advisors for the insolvency administrator and the lenders group, respectively.
Europe-based HEUBACH group is one of the largest manufacturers in the colorants industry founded over 200 years ago. The offering comprises an extensive range of products and solutions from interior and exterior paintings to car coatings and coil coatings as well as plastics coloration, corrosion protection, pharmaceuticals, and seed colorings. HEUBACH has a global production footprint and generated sales of approx. EUR 1.000m in FY23 with around 2,800 employees. A large merger of HEUBACH and the Pigments Business Unit of Clariant in 2022 formed a new pigments powerhouse. However, due to an unfavorable financing environment in parallel to increasing energy prices and competition from Asian players in the Commodity segment, ultimately caused the German entities to file for insolvency, affecting other solvent group entities in its operations.
SCIL is an Indian-based global supplier of high-end pigments with a diverse range of products ranging from organic, inorganic and effect pigments to performance colorants, pearlescent pigments, and specialty chemicals.
On 11th October 2024, Sudarshan Chemical Industries signed a definitive agreement to acquire the Heubach Group. The signing of the transaction took place in form of several asset and share deals and comprises the entire operations of the HEUBACH group which spans multiple jurisdictions, including production facilities in Germany, India, Mexico, and Japan. The acquisition was closed on 28th February.
This merger will mark a significant milestone in the industry by combining two of the leading players in the coatings and pigments business. „It will enhance SCIL’s product portfolio, giving it deeper access to customers and a diversified asset footprint across 19 sites globally,“ Sudarshan announced in the filing.
About Deloitte – Turnaround & Restructuring (T&R)
As Deloitte T&R professionals, we provide performance improvement, turnaround and interim management, restructuring, bankruptcy, and financial advisory services.
About Deloitte – Corporate Finance Advisory (CFA)
As leading independent M&A advisors, we provide M&A deal execution and financial advisory services to large and mid-market corporations as well as to private equity firms globally. We offer financial advice and insight at every stage of a transaction – from consideration of strategic options to transaction execution, be it an IPO, acquisition or divestment, restructuring or fast track disposal. We pride ourselves in our independent advice to our clients.
Deal contacts:
Stefan Weniger, Partner Turnaround & Restructuring (Germany): +49 172 7755 762, sweniger@deloitte.de
Alexander C. Bielig, Managing Director Corporate Finance Advisory (Germany): +49 151 58000 698, abielig@deloitte.de