ICICI Venture, the private equity arm of ICICI Bank, today signed an agreement with mining and mineral processing company Imerys to sell its 99 per cent stake in Ace Refractories.
ICICI Venture acquired the refractory division from ACC in 2005 and subsequently changed its name to Ace Refractories Ltd. The transaction with Imerys is expected to close by month-end. Imerys will acquire the stake from ICICI Venture through its wholly owned subsidiary, Calderys.
Both the companies declined to divulge the monetary consideration of the deal.
Ace Refractories clocked revenues worth Rs 321 crore in 2006-07 and it is the second largest refractory company in the country.
“Ace was a classic ICICI Venture investment, involving the divestiture of a non-core business of a large company. We saw a solid platform for future growth, as Ace was the only large player in a fragmented industry,” said Renuka Ramnath, managing director of ICICI Venture and chairman of Ace Refractories.
“The acquisition of Acegives us a strong foothold in India and helps us consolidate our position in the global market, particularly in the monolithic refractories segment,” said Gerard Buffiere, chief executive officer of Imerys.
UBS was the financial adviser to ICICI Venture and Allegro Advisors was the financial adviser to Imerys.
Ace is the country’s second largest player with an estimated profit of Rs 30 crore and over 50 per cent market share. It supplies refractories to steel, sponge iron, cement, petrochemicals and fertiliser companies.
Source: The Telegraph