Surat based Anupam Rasayan Seals $150 Million US Deal, Acquires Jayhawk Fine Chemicals

Surat | Gujarat — Anupam Rasayan India Limited, a company having a global reputation for manufacturing specialised chemicals at Sachin GIDC in the diamond city of Surat, has signed the biggest deal ever in America. Anupam Rasaya, a company run by Anand Desai, one of Surat’s top 10 billionaires, has created history by signing an agreement of Rs 1350 crore (US$ 150 million) to buy America’s Jayhawk Fine Chemicals .

Anupam Rasayan India Ltd.,  a leader in custom synthesis manufacturing and speciality chemicals, on Wednesday signed an agreement to acquire 100% of Jayhawk Fine Chemicals Corporation (“Jahawk”) (part of CABB Group), a US specialty chemicals company. The deal is valued at approximately $150 million, or approximately Rs.1350 crore. 

This amount includes Jayhawk’s equity value and loans to existing shareholders. As of June 25, Jayhawk had approximately $16 million in cash (approximately INR 144 crore), giving an enterprise value of approximately $134 million (approximately INR 1206 crore). Jayhawk had revenue of around $78 million (INR 702 crore) and EBITDA of around $15 million (INR 135 crore) in CY24, giving an EV/EBITDA ratio of around nine times. The money for the acquisition will come from the company’s own profits, debt and a large global investment firm with assets of over $100 billion. The deal will be EPS accretive for Anupam.

Speaking about the acquisition, Anand Desai, Managing Director, Anupam Chemicals India Ltd. said, “ “This acquisition is the first step for Anupam to start manufacturing in the US, which will be a major game-changer in Anupam’s global journey. Jayhawk brings us a legacy of innovation, deep customer relationships and a strong technology platform in high-value chemicals. Together, we will leverage our complementary strengths to drive growth, strengthen our global presence and deliver greater value to customers in key sectors such as aerospace, semiconductors and electronics. Now with Jayhawk, we create N-1 molecules for key sectors across the value chain.”

Anand Desai further said, “Established in 1941 and headquartered in Galena, Kansas, USA, Jayhawk Fine Chemicals is part of the CABB Group and is renowned for custom manufacturing of advanced intermediates, active ingredients and high-performance materials. The company is capable of complex chemicals including halogenation, oxidation, nitration, Suzuki coupling and azo chemistry. Jayhawk’s US operations strengthen our global presence and bring us closer to strategic customers in developed markets.” Anupam Chemicals was acquired by Chennai-based TANFAC Industries Ltd. in 2022.

Tobias Schallo, CEO, CABB Group, said, “This transaction is a strategic step for our company, and we have made this decision with full confidence and trust in the new owner. We have created a viable platform in the pharma and life sciences specialties, which we will continue to grow and expand”.