Discussions underway for Dorf-Ketal to secure $500 million in private credit for potential European acquisition targets
Dorf-Ketal Chemicals, a Mumbai-based speciality chemicals firm, is in the midst of private negotiations with unidentified private credit lenders to raise approximately $500 million for a planned acquisition of a European peer owned by private equity. Despite ongoing discussions, the names of the private credit funds and the target company have yet to be revealed.
The acquisition, if finalized, would mark a significant milestone for Dorf-Ketal, as it would be their largest to date. The firm is putting together a broader financing package for the acquisition, which includes talks on the pricing of a bond issue. Term sheets with lenders are expected to be signed this month or next, according to sources who have requested anonymity due to the private nature of the discussions.
Dorf-Ketal Chemicals supplies process chemicals and additives to oil refiners and has been actively pursuing overseas acquisitions in recent years. In March, the company expanded its distribution partnership with Germany's Lehvoss Group. The planned acquisition is expected to take place before Dorf-Ketal's initial public offering, which was signalled with the filing of draft papers for a 50 billion-rupee ($583.5 million) IPO in January.
However, the identities of the private credit funds involved remain confidential as of now. Dorf-Ketal Chemicals did not respond to a request for comment by Reuters. The name of the target company could not be immediately determined.
The private credit tranche is expected to be a component of the financing package for the acquisition. While the specific details about the private credit participants have not emerged in available reports, it is anticipated that the funds raised will be used to finance the acquisition.
The acquisition comes ahead of Dorf-Ketal's planned initial public offering, signalling the company's continued growth and expansion in the global market. As more details unfold, the industry eagerly awaits the identity of the private credit funds and the target company involved in this potential $500 million deal.
The acquisition, if successful, will be financed in part by private credit lenders, marking a significant move in Dorf-Ketal Chemicals' financial strategy. This fundraising effort is part of a broader financing package aimed at supporting Dorf-Ketal's largest acquisition to date.
