Sudarshan Sharpens Focus on Core Pigments
Sudarshan Chemical Industries Ltd. is sharpening its focus on its core pigments and colorants business by divesting its 100% stake in VP4 Frankfurt GmbH for €76.5 million. On August 31, Sudarshan Germany Horizons GmbH, a step-down wholly owned subsidiary, signed the definitive share purchase agreement with a buyer belonging to Celanese Corporation.
The transaction is subject to customary closing conditions and will result in VP4 Frankfurt ceasing to be part of the Sudarshan group. VP4 Frankfurt, acquired as part of the Heubach Group transaction, primarily manufactures intermediates as a tolling operator and generated only a small portion of output for Sudarshan’s captive use, while Nutrinova is its principal customer.
The asset’s key intermediate, diketene, is used in functional food ingredients, making it a strategic fit for Celanese and Nutrinova. Importantly, Nutrinova will continue supplying Sudarshan with required materials after the sale.
Overall, the divestment represents a portfolio rationalisation move, allowing Sudarshan to concentrate more closely on its pigments business while transferring an asset to a buyer more closely aligned with its existing operations.