BDA advises OMNOVA Solutions on sale of OMNOVA India to Apcotex Industries

BDA Partners is pleased to announce that its client, OMNOVA Solutions Inc. (NYSE: OMN) a global leading provider of emulsion polymers and specialty chemicals, has sold its rubber manufacturing business in India to Apcotex Industries Limited (“Apcotex”), an India-based leading provider of a range of emulsion polymers. BDA was the exclusive advisor to OMNOVA on this transaction.

OMNOVA’s India business is the sole manufacturer of acrylonitrile butadiene rubber (NBR) and one of the two manufacturers of high styrene rubber (HSR) in India. It has over 20% market share in India in NBR and HSR and longstanding customers in automotive, rice rolls, conveyor belts, hoses, cables and other industrial applications.

The transaction includes the manufacturing plant and its associated product lines: NBR in bale form, high styrene rubber masterbatches, and NBR-PVC polyblends in Valia, India. OMNOVA Solutions will maintain its sales office in Mumbai to manage the continued growth of the Company’s specialty polymers in the Indian market, through imports from other OMNOVA facilities in Asia, Europe, and North America.

Apcotex acquired 100% stake from OMNOVA and will further invest in the operations and support the key employees in new growth initiatives. Apcotex brings synergies with the rest of its product portfolio. With this acquisition, Apcotex will be the largest manufacturer of NBR and HSR in India.

Euan Rellie, Co-Founder and Senior Managing Director at BDA, said, “We’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&A market is seeing increasing activity, and BDA is well placed in that market. We’re pleased to be the mid-market, cross-border M&A advisor of choice for exacting clients such as OMNOVA.”