Skip to main content

IMCD to acquire Indian speciality chemicals distributor Signet

Written by Customer Service on . Posted in Mergers And Acquisitions.

ROTTERDAM, The Netherlands (15 September 2020, 17:42 CET) – IMCD N.V. (“IMCD” or the “Company”), a leading global distributor of speciality chemicals and food and pharma ingredients, today announces that it has signed an agreement to acquire 100% of Signet Excipients Private Limited (“Signet”), one of the leading distributors of excipients in India. Signet is well aligned with the IMCD business model and strategy and provides a significant platform for further growth in India and the Asia-Pacific region.Founded in 1986, Signet grew from a small distribution company to one of the leading distributors of excipients in India. It focusses on the distribution of pharmaceutical, nutraceutical and bio-pharma excipients across categories such as diluents, fillers, sweeteners, disintegrants, binders, surfactants and others. Based in Mumbai, Signet is also active in India, Bangladesh, the Middle East and Africa. Signet currently serves more than 900+ customers, with 400+ products from the world’s leading excipient producers. With approximately 100 employees, Signet generated revenue of INR 13.2 billion (ca. EUR 152 million) in the last twelve months up to and including June 2020, and realised a normalised EBITA of INR 3.4 billion (ca. EUR 39 million).The transaction will take place in two tranches, with IMCD now acquiring 70% of the share capital from the founders and the remaining 30% by 2024. The transaction is expected to have high single digit cash EPS accretion in the first full year post acquisition. The founders of Signet will continue to lead the company post completion of the first tranche.With its asset light business model and long-term relationships with leading tier 1 global excipient producers, the acquisition of Signet by IMCD has a strong strategic rationale. It is an important step in IMCD’s strategy to become a leading global speciality pharma ingredient distributor and strengthens IMCD’s footprint in the high growth and resilient pharma excipient distribution market. It furthermore significantly strengthens IMCD’s presence in India and increases IMCD’s position in the high-growth APAC region.Piet van der Slikke, CEO of IMCD commented: “As India is the largest supplier of generic medicines globally, it is our ambition for our pharmaceutical business to have a strong presence there. Hence, I am pleased that Signet and IMCD will now join their activities in India, Bangladesh, the Middle East and Africa.”Harish Shah, founder and managing director of Signet, adds: “IMCD is an excellent partner for Signet, not only due to the similarity of our principals but moreover the culture of growth through deep market knowledge, technical innovation and highest levels of service. We look forward to being a strategic part of IMCD’s global pharmaceutical business.”The closing of the transaction is subject to customary closing conditions and regulatory approval, and is expected to take place in the last quarter of 2020.Piet van der Slikke (CEO) and Hans Kooijmans (CFO) will host a conference call later today, at 18:15 PM CET. The presentation used in the call and an audio replay of the call will be made available on the website www.imcdgroup.com/investors.This press release contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.Attached, please find the press release in pdf format.AttachmentIMCD to acquire Indian speciality chemicals distributor Signet

Disclaimer & Cookie Notice

Welcome to GOLDEA services for Professionals

Before you continue, please confirm the following:

Professional advisers only

I am a professional adviser and would like to visit the GOLDEA CAPITAL for Professionals website.

Important Notice for Investors:

The services and products offered by Goldalea Capital Ltd. are intended exclusively for professional market participants as defined by applicable laws and regulations. This typically includes institutional investors, qualified investors, and high-net-worth individuals who have sufficient knowledge, experience, resources, and independence to assess the risks of trading on their own.

No Investment Advice:

The information, analyses, and market data provided are for general information purposes only and do not constitute individual investment advice. They should not be construed as a basis for investment decisions and do not take into account the specific investment objectives, financial situation, or individual needs of any recipient.

High Risks:

Trading in financial instruments is associated with significant risks and may result in the complete loss of the invested capital. Goldalea Capital Ltd. accepts no liability for losses incurred as a result of the use of the information provided or the execution of transactions.

Sole Responsibility:

The decision to invest or not to invest is solely the responsibility of the investor. Investors should obtain comprehensive information about the risks involved before making any investment decision and, if necessary, seek independent advice.

No Guarantees:

Goldalea Capital Ltd. makes no warranties or representations as to the accuracy, completeness, or timeliness of the information provided. Markets are subject to constant change, and past performance is not a reliable indicator of future results.

Regional Restrictions:

The services offered by Goldalea Capital Ltd. may not be available to all persons or in all countries. It is the responsibility of the investor to ensure that they are authorized to use the services offered.

Please note: This disclaimer is for general information purposes only and does not replace individual legal or tax advice.