In a press release datelined Kirchheim, Chennai, and Singapore 13 November 2024, Hubergroup, a global leader in specialty chemicals and print solutions, announced the signing of a sale and purchase agreement with a consortium between MAVCO Investments, a private investment vehicle belonging to select members of the Murugappa family and funds managed by Avenue Capital Group, a global investment firm headquartered in the US.
The consortium will acquire all shares in the company from the current owner, Cornelius Treuhand Holding which is a business that acquires company shares to resolve exceptional situations. The completion of the transaction is subject to the required regulatory approvals.
The consortium of Mavco and Avenue Capital signed the agreement in the past week to buy German specialty chemicals firm Hubergroup for US $310 million (approximately Indian Rs 2,600 crore), according to reports in the financial press.
Hubergroup is an international printing inks and chemicals specialist based near Munich Germany with a legacy of more than 258 years. For almost its entire history the group was a family-owned company, although the current acquisition is between Frankfurt-headquartered Cornelius Truehand Holding and the Murugappa Group’s family investment company Mavco and its US-based partner the Avenue Capital Group.
Hubergroup’s Print Solutions Division produces inks, varnishes, and printing auxiliaries for packaging, commercial, and newspaper printing. The more recently created Chemicals Division produces specialty chemicals such as resins, laminating adhesives, pigments, and additives at its plants in India which are part of the Micro Inks acquisition from the Bhilakia group beginning in 2005 and completed in 2006.
In 2022, Hubergroup employed around 3,000 people in almost 30 countries and generated annual sales of Euro 812 million (approximately Rs 7,200 crore). With a turnover of about Rs. 2,793 crores in the calendar year 2023, Hubergroup India is a leader in the Indian printing and packaging inks and chemicals industry. It has a substantial market share in India supplying inks, resins, pigments, chemicals, coatings, and adhesives to printers, packaging converters, and other manufacturers. It is also a significant exporter of ink intermediates and finished products with half of its production sent overseas.
Regarding the acquisition, MAM Arunachalam (also known as Arun Murugappan), director of Mavco Investments the Murugappa family investment company, said, “This collaboration marks our strategic entry into the global print, packaging solutions and allied products. Together with Avenue Capital Group, we are committed to accelerating Hubergroup’s growth in key international markets.”
Pankaj Goel, head of Partnerships Asia Pacific, and Rohit Santani, head of India for Avenue Capital Group, said, “We are excited to partner with Mavco to unlock Hubergroup’s potential in new and existing markets and deliver robust and profitable growth for the years to come. Mavco’s strategic vision and operational expertise combined with Hubergroup’s drive for innovation and growth potential fits perfectly with our approach to back transformative businesses.”
