Himadri Interested in Ruetgers

Indian group Himadri Chemicals is interested in bigger European peer Ruetgers Group, which is being put up for sale by private equity owner Triton.

"Once the (sales) process starts, we will definitely look at the company," chief executive Anurag Choudhary told Reuters.

Triton, which acquired Ruetgers in 2008, is looking to divest its holding in the chemicals maker, which primarily makes industrial products derived from distillation of coal tar.

It has hired Goldman Sachs to look for possible buyers and will soon ask for first bids, sources close to the process said.

A price tag of €700-750 million (925-$990 million) could be within reach, an industry source said.

Ruetgers distils coal tar to produce industrial pitch for use in aluminum smelters and the steel industry.

Himadri previously expressed an interest in Ruetgers when former owner Degussa - now a part of Evonik - sold the unit in 2008.

Private equity groups are also likely to bid, industry sources said.

For Himadri, which has annual sales of about 7 billion rupees ($141 million) and a market capitalisation of $320 million, Ruetgers would offer a good strategic fit, Choudhary said.

"That (Ruetgers) business is from matured markets - from Europe and the U.S. - and we are having our facilities in the eastern part of the world," Choudhary said. "So that makes for a lot of synergies."

Private equity groups Bain Capital holds almost 27% in Himadri and Citigroup Venture Capital International is also a key shareholder.

"Depending on the balance sheet (of Ruetgers) and how the business has grown over the last 2-3 years, we will take a decision," Choudhary said.