Dorf-Ketal Discussing Potential $500 Million Funding for Private Credit to Facilitate European Acquisitions
Mumbai-based Dorf-Ketal Chemicals has set its sights on a significant expansion, filing draft papers for a 50 billion-rupee ($583.5 million) Initial Public Offering (IPO) in January. The company is currently in negotiations with private credit lenders to secure funding for this acquisition, which, if successful, is expected to be its largest to date.
The acquisition would likely extend Dorf-Ketal Chemicals' operations in Europe, marking a significant step in the company's global growth strategy. The identity of the target company and the private credit funds involved in the deal have not been publicly disclosed, with the discussions regarding the deal remaining private.
Negotiations on the pricing of the bond issue are ongoing, and term sheets with lenders are expected to be signed this month or next. The private credit tranche is anticipated to be a part of the overall funding package, contributing to Dorf-Ketal's broader efforts to acquire a European specialty chemicals firm.
It is worth noting that major private credit players such as Blackstone are actively expanding their European private credit funds. While there is no direct confirmation of their involvement in this specific transaction, this broader market context suggests a growing trend in such deals.
In a related development, Dorf-Ketal recently expanded its distribution partnership with Germany's Lehvoss Group in March, signalling the company's commitment to strengthening its European presence.
Dorf-Ketal Chemicals, however, did not respond to a Reuters request for comment. The company has pursued smaller overseas acquisitions in recent years, demonstrating its strategic approach to global expansion.
If finalized, this acquisition would significantly boost Dorf-Ketal's position in the global specialty chemicals market, further cementing its status as a key player in the industry. The progress of the negotiations and the impending signing of term sheets suggest that the acquisition process is moving forward.
[1] https://www.livemint.com/companies/news/dorf-ketal-chemicals-in-talks-to-raise-rs-4-285-crore-from-private-credit-lenders-11649071099338.html [4] https://www.livemint.com/companies/news/dorf-ketal-chemicals-plans-500-million-acquisition-private-credit-funds-not-disclosed-11649071098991.html [5] https://www.reuters.com/business/private-equity/exclusive-blackstone-expands-european-private-credit-funds-2021-09-23/
- The acquisition, if successful, would see Dorf-Ketal Chemicals investing heavily in finance to fund the acquisition of a European specialty chemicals firm.
- The private credit funding is a crucial part of Dorf-Ketal Chemicals' financial strategy, contributing to its efforts to expand its operations in Europe and boost its position in the global specialty chemicals market.
