Avendus Advises Shiva Performance Materials on Its Acquisition of a Majority Stake in INEOS Styrolution India

Shiva Performance Materials Private Limited (“SPM”), part of the Shiva Group, a leading specialty chemicals player based out of Vadodara, announced today that it will acquire a majority stake in INEOS Styrolution India Limited, a publicly listed entity in India, controlled by the INEOS Group. With this transaction, the INEOS Group will completely exit as the shareholder of INEOS Styrolution India Limited. The transaction triggers a mandatory tender offer (MTO), and the completion is subject to fulfilment of required customary conditions.

Avendus was the exclusive transaction and financing advisor to Shiva Performance Materials Private Limited. Playing an end-to-end role in the deal, Avendus provided M&A advisory services and raised transaction financing for the acquisition.

Deal Value

Undisclosed

Service

Mergers & Acquisitions

Sector

Industrials

Date

August 2022

We are extremely proud to acquire a majority stake in INEOS Styrolution India Limited from the INEOS Group. This transaction is highly gratifying to me personally because I had previously led and managed its operations during 1978-2012 as an MD. Its leadership position in the Indian ABS and SAN market will help us to cater to growing demand from automotive, consumer durables and other industries. Our vision is to carry forward the rich legacy that will be left behind by INEOS and vigorously expand the capacities of ABS, SAN and Polystyrene over time to reduce India’s dependence on imports of ABS and SAN.

Rakesh Agrawal

Whole Time Director and Chairman, Shiva Group

We are privileged to partner with the Shiva Group on this landmark acquisition of INEOS Styrolution India Limited, the #1 producer of ABS and SAN in India. This is the latest in a spree of acquisitions where Indian Groups are looking at MNC businesses to scale up their existing operations. We are confident that this acquisition will help the Shiva Group expand its product portfolio and accelerate its growth prospects significantly in the years to come.

Koushik Bhattacharyya

Managing Director & Head, Industrials Investment Banking, Avendus Capital

It has been an absolute pleasure to work with Shiva group on one of our largest transactions in the credit space. Their long association with INEOS Styrolution, and the expertise in the ABS space puts them in a unique position to benefit from this acquisition. The financing was arranged in the most optimal structure, aligning current status of the business with strategic
intent of the buyer going forward. It is a testament to our ability to offer the most suitable financing solution to our clients, especially in M&A/buyout situations where we are witnessing large transactions and where Structured Debt is becoming a key driver.

Nilesh Dhedhi

Head, Structured Credit, Avendus Finance

About Shiva Performance Materials

This acquisition will enable SPM, a leading manufacturer of acrylic resins, resin solutions and emulsions for specific printing and packaging applications, to expand its product portfolio and command a market leadership position in the ABS (acrylonitrile butadiene styrene) and SAN (styrene acrylonitrile) market in India.