Chennai-based Raj Petro Specialities has been acquired by Germany’s Brenntag, a player in the chemical distribution space. Brenntag will gain a majority stake of 65 per cent in Raj Petro by April 2018 for a deal valued $92 million. The remaining 35 per cent will be acquired after five years. During the interim period, the business will be operated as a joint venture with a possible extension of one to two years.

“For Brenntag, the acquisition of Raj is a further step into the Indian chemical distribution market, which is the seventh largest globally for chemicals and third largest for lubricants. Raj’s existing product portfolio and market presence, capability of its infrastructure and strategic locations make it a compelling investment target to expand our footprint not only in India but also in other Asia-Pacific countries, in Africa and the Middle East,” Steven Holland (in pic), CEO, Brenntag Group, said. Raj Petro had a turnover of Rs 1,190 crore last financial year and it expects to post revenues of Rs 13,50 crore in the current year. Raj’s portfolio contains own-blended petroleum-related products, servicing a variety of product groups like transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents as well as industrial and automotive lubes.

It has production facilities in west and south India, with a capacity of 350,000 kl/t. India is the third largest lubricant market with a 5.5 per cent share, but its per capita consumption is 1.8 kg versus global average of 5 kg.