The Hindu Business Line : Dorf Ketal completes ExxonMobil Chemical unit buy

Going global
The acquisition would help the company consolidate its position as the leading global player in the specialty chemicals market.
As part of the acquisition, ExxonMobil Chemical will transfer its sales, marketing and product representation to Dorf Ketal.

Mumbai March 21

Speciality chemicals company Dorf Ketal has completed the acquisition of ExxonMobil Chemical's component additive business in the US, for an undisclosed sum. The components additive business had clocked revenues of $43 million (an estimated Rs 187 crore) in 2006, a Dorf representative told Business Line. The acquisition would be funded through internal accruals, the Dorf official said.

Customer-base

The acquisition brings into the Dorf fold only the business component and not the manufacturing facility and people associated with it, the Dorf official said. The manufacturing of the acquired products would shift to Dorf's plants in the US (Houston) and India (Taloja, Maharashtra), he added.

As part of the acquisition, ExxonMobil Chemical will transfer its sales, marketing and product representation, manufacturing, inventory ownership and replenishment, customer service, order fulfilment and technical support to Dorf Ketal, from April 4, a note from Dorf said.

ExxonMobil sought to exit from the components additive business, since it was ancillary for the global petrochemical company. The Indian company expects more products to be added to its portfolio through the acquisition, besides gaining access to a larger international customer-base, the official said.

Niche Segment

This is Dorf Ketal's second overseas acquisition, the first being in 2001, when it acquired UOP's chemical business in the US.

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