The acquisition was finalised this week and can see Murugappa, together with investment firm Avenue Capital Group, take full possession of Hubergroup from Cornelius Treuhand Holding, pending regulatory approval.
The transaction consists of $160 million to refinance Hubergroup’s debt and a $150-million fairness infusion from Murugappa moreover working capital, in line with sources aware of the matter.
The Murugappa Group didn’t instantly reply to requests for remark whereas Hubergroup couldn’t be reached for remark. The deal follows a aggressive bidding course of that included Edelweiss and Jindal Poly Movies, each of which reportedly sought to amass Hubergroup with monetary backing. Regardless of the competitors, Murugappa’s consortium emerged as the popular bidder.
Final month, CARE Scores reported that Hubergroup deliberate to tackle vital debt to purchase fairness in fellow subsidiaries from its mother or father firm, MHM Holding GmbH, for round ₹1,350 crore. Hubergroup aimed to fund this largely by means of new debt and inner funds.
The transaction, initially set for early 2024, confronted authorized points in Germany and was placed on maintain whereas lenders had prolonged compensation to December 2024 and appointed a trustee and administration advisor to handle refinancing efforts, with a possible strategic fairness investor to switch MHM’s debt.
Hubergroup India is the market chief within the Indian printing trade with market share of round 30%, with main print media publication homes together with packaging and FMCG corporations as its shoppers.
This firm was initially promoted by the Bilakhia Group in 1991. It’s now majorly owned by Germany’s Hubergroup, which acquired almost full possession by late 2023. The corporate additionally manufactures key ink parts like adhesives, resins, and pigments at its Vapi, Daman and Silvassa vegetation. It provides almost half its merchandise to India and the remaining globally by means of subsidiaries in nations just like the US, Australia and Thailand.
Murugappa is a diversified conglomerate with pursuits in agriculture, engineering and monetary providers, and operates listed entities together with CG Energy & Industrial Options, Cholamandalam Monetary Holdings, and Tube Investments of India.