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HPL, Partner Company buy US-based Lummus Technology

Haldia Petrochemicals (HPL), a flagship company of The Chatterjee Group (TCG) in West Bengal, has made the biggest overseas acquisition by an Indian company this year. HPL along with an international partner Rhone Capital has acquired the US-based Lummus Technology at an enterprise value (EV) of $2.7 billion (approximately Rs 205.90 billion) from McDermott International.

 

Lummus Technology is a leading master licensor of proprietary technologies in refining, petrochemicals, gas processing and coal gasification sectors. The deal includes the debt of Lummus as well which will be part of the takeover. The share of HPL in the takeover would be 57% and the rest will be with Rhone. According to sources, the current debt of Lummus Technology Lummus Technology would be refinanced by the acquirers.

 

HPL was in the fray for multinational chemicals major Basell as well in 2005-06. Currently, HPL has a turnover of over Rs 120 billion crore and has an ultra-modern petrochemicals facility at Haldia. For HPL, it is a new feather in the cap, which was at the verge of BIFR in 2013 and made a huge turnaround following the takeover by TCG in 2014-15.

 

SBI chairman Rajnish Kumar, the lead banker in the deal, mentioned: “Acquisition of Lummus, world’s premier petrochemicals company, by Haldia Petrochemicals is a landmark achievement by an Indian company.”

 

With a heritage spanning 110 years, Lummus Technology has around 130 licensed technologies and more than 3,400 patents and trademarks.

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