<article>Mumbai-based <a style="color: #000080;" href="http://apcotex.com/" target="_blank">Apcotex Industries Ltd</a> has acquired Omnova Solutions India Pvt Ltd (OSIPL), the Indian arm of US-based specialty company <a style="color: #000080;" href="http://www.omnova.com/default.aspx" target="_blank">Omnova Solutions Inc</a>, for Rs 36 crore ($5.3 million), according to a stock market disclosure.</article>

Mumbai-based <a style="color: #000080;" href="http://apcotex.com/" target="_blank">Apcotex Industries Ltd</a> has acquired Omnova Solutions India Pvt Ltd (OSIPL), the Indian arm of US-based specialty company <a style="color: #000080;" href="http://www.omnova.com/default.aspx" target="_blank">Omnova Solutions Inc</a>, for Rs 36 crore ($5.3 million), according to a stock market disclosure.
Omnova India is the only manufacturer of acrylonitrile butadiene rubber (NBR) and is the second top high styrene rubber (HSR) maker after Apcotex in India.
With this acquisition, Apcotex will become the largest manufacturer of NBR and HSR in the country.
Post deal, Omnova Solutions will continue to maintain its sales office in Mumbai to manage the continued growth of the company&#8217;s specialty polymers in the Indian market.
&#8220;This sizeable bolt-on acquisition bolsters our optimism about the long-term value creation potential of Apcotex. We gain access to new product lines, new technologies and new processes with a potential to scale up significantly,&#8221; said Abhiraj Choksey, MD, Apcotex.
&#8220;We will continue to focus on improving market share in India, improving capacity utilisation, reducing high cost structures and optimising usage of capital. We believe this acquisition will yield a superior value to all our stakeholders,&#8221; added Choksey.
Apcotex will further invest Rs 40 crore ($5.8 million) in the operations and support the key employees in new growth initiatives.
&#8220;We&#8217;re pleased to demonstrate again our global chemical capabilities, and ability to effect divestures for multinationals across Asia. We have now been involved in three transactions over the years involving this asset. The Indian M&amp;A market is seeing increasing activity, and BDA is well placed in that market. We&#8217;re pleased to be the mid-market, cross-border M&amp;A advisor of choice for exacting clients such as OMNOVA,&#8221; said Euan Rellie, co-Founder and senior MD, BDA.
BDA Partners advised Omnova Solutions on the sale of India business.
Omnova provides provides emulsion polymers, specialty chemicals, and functional and decorative surfaces.
For the financial year ended March 2015, the company reported a gross revenue of Rs 391 crore, EBITDA of Rs 47 crore and a net profit of Rs 25 crore.
Shares of Apcotex were trading at Rs 201 each, down 0.50 percent on BSE in a weak Mumbai market on Wednesday at 11.32 AM.
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India: Apcotex acquires Omnova Solutions India for $5m

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India: Apcotex acquires Omnova Solutions India for $5m

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