Murugappa to Acquire Germany's Hubergroup in a $310 Million Deal

The Murugappa Group has finalized a major deal to acquire Hubergroup, a specialty chemicals company based in Germany, for an enterprise value of $310 million. This acquisition is a strategic move by Murugappa to expand its presence in the global print and packaging sector, which is highly competitive and poised for growth. The deal will provide Murugappa with full ownership of Hubergroup through a partnership with Avenue Capital Group, which will take the company over from Cornelius Treuhand Holding. The terms of the deal include refinancing Hubergroup’s existing debt of $160 million, along with a $150 million equity infusion from Murugappa. Additional working capital will also be provided to ensure the continued operation and growth of the business.

However, the acquisition faced unexpected delays due to legal challenges in Germany, which pushed back the original timeline for the transaction. Initially planned for completion in early 2024, the deal was postponed as the involved lenders agreed to extend the repayment deadline to December 2024. During this delay, the lenders appointed a trustee and management consultant to oversee the refinancing process and explore options for strategic equity investors who could help replace the existing debt held by MHM Holding GmbH.

Hubergroup India, a subsidiary of the German parent company, is a dominant force in the Indian printing industry, with a commanding 30% market share. The company serves a wide range of clients, including leading print media houses, packaging companies, and FMCG businesses. Hubergroup India was established in 1991 by the Bilakhia Group and was later acquired by Hubergroup, which achieved near-total ownership in 2023. The company operates production facilities in Vapi, Daman, and Silvassa, where it manufactures key ink components such as adhesives, resins, and pigments. Around 50% of its products are sold within the Indian market, while the remaining products are exported to international markets such as the US, Australia, and Thailand.

The Murugappa Group, a diversified conglomerate based in India, has a broad portfolio that spans agriculture, engineering, and financial services. Among its listed entities are CG Power & Industrial Solutions, Cholamandalam Financial Holdings, and Tube Investments of India. As reported by Economic Times Now, with this acquisition, Murugappa aims to strengthen its global operations, particularly in the print and packaging sector, which is experiencing rapid growth. By leveraging Hubergroup’s established market presence, production capabilities, and industry expertise, Murugappa seeks to enhance its position in the global market and capitalize on future growth opportunities. The acquisition marks a significant step in the company’s expansion strategy, reinforcing its competitive edge in a key industrial sector.