Omnova Sells Indian Rubber Assets to Apcotex
A greater focus on its strategic priorities has prompted US specialty chemicals producer Omnova Solutions to sell its Indian rubber manufacturing business to Apcotex Industries, one of India’s leading producers of performance emulsion polymers. The business was sold under a share purchase agreement for cash proceeds of approximately $5 million. The transaction includes Omnova’s manufacturing plant in Valia and its associated product lines, notably acrylonitrile butadiene rubber (NBR) in bale form, high styrene rubber masterbatches, and NPR-PVC polyblends.
The plant and the three small rubber product lines were part of Omnova’s acquisition of Eliokem’s global specialty polymers business and there were few synergies with the rest of the portfolio. Omnova bought the French specialty chemicals company from AXA Private Equity in December 2010 for $302 million.
The US company will retain its sales and market development office in Mumbai, from where it will manage the business’s future growth through imports from its other plants in Europe, Asia and North America.
Kevin McMullen, chairman and CEO of Omnova Solutions, said India remains an important growth market with exciting opportunities to grow the more strategic specialty chemicals and additives that it currently sells there. The list includes specialty coatings, reinforcing resins, tire cord latex, elastomeric modifiers, antioxidants and products for oil & gas drilling.
In fiscal 2015, Apcotex reported a net loss of $400,000 on sales of around $28.2 million.
