Haldia Petrochemicals Limited (
HPL), a
flagship company of The Chatterjee Group (TCG), along with an international partner and private equity firm Rhone Capital, has acquired the US based Lummus Technology for an enterprise value (EV) of $ 2.725 billion (approximately Rs 20,590 crore) from McDermott International.
The development is expected to accelerate India’s progress towards ‘self reliance’ in materials technology space, said a press statement issued by the company on Wednesday.
Under the new dispensation, Lummus Technology would function as a ‘standalone’ autonomous entity. HPL, with its experience in manufacturing polymer products and downstream chemicals, would partner with Lummus in evolving technological improvements for these segments, the company release added.
Post buyout, Lummus and HPL plans to provide a more compelling ‘value proposition’ to the clients of Lummus in India and abroad. On the other hand, HPL’s policy initiative to pivot
upstream investments in ‘oil to chemical’ sector is likely to receive a major boost as a result of association with Lummus, the release stated.
Lummus Technology is a leading master licensor of proprietary technologies in refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment and related engineering services. The US firm has around 130 licensed technologies and more than 3400 patents and trademarks.
According to Lummus Technology head Leon de Bruyn: “For our customers, employees and partners this is an important milestone. We will be able to focus exclusively on providing world class technologies and solutions and developing long term strategies that will allow Lummus to lead and shape the future of our industry.”
For TCG founder Purnendu Chatterjee, the investment is both strategic and long term. "HPL being a long term client of Lummus can share its customer experience and collaborate with Lummus to co-create innovations for the benefit of the industry," he said.
State Bank of India was the lead banker.
HPL's association with Lummus Technology, the prestigious licensor of several proprietary technologies in the refining, petrochemicals and gas processing segments, will foster innovations aimed at technological sophistication and enhanced investor satisfaction, said Subhasendu Chatterjee, whole time director, HPL.
Headquartered in USA, The Chatterjee Group has controlling stake in Haldia Petrochemicals Limited. The group owns and controls companies as ‘long-term investments’ in many sectors including petrochemicals, pharmaceuticals, biotech, financial services, real estate and technology.