Sudarshan’s VP4 Frankfurt sale: sharpening focus and strengthening the balance sheet
Frequently Asked Questions
Sudarshan is selling its investment in VP4 Frankfurt GmbH, a step-down wholly-owned subsidiary, through Sudarshan Germany Horizons GmbH.
VP4 Frankfurt is a manufacturing facility for Diketene and CKP (Crotanaldehyde-Ketan-Polymer).
The presentation states around 90 to 95 percent is sold into food additives to Nutrivova, about 5 percent is used by Sudarshan for arylides (azo yellow pigment), and 2 to 3 percent is sold to other parties.
The buyer is Celanese US Holdings LLC. Nutrivova is described as a joint venture between Celanese Corporation and Mitsui and Co., and Celanese will acquire and operate the VP4 plant for a transitional period before ownership passes to Nutrivova.
The deal value is EUR 76.5 million and expected closure is approximately 2 to 3 months from the presentation date.
The company states the proceeds will be primarily used for prepayment of an acquisition loan, with the stated objective of becoming a zero net debt or positive cash company.
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