The Murugappa Group, in partnership with Avenue Capital Group, has agreed to acquire Hubergroup, a 259 years old German company, for an enterprise value of $310 million. This acquisition will help Murugappa expand its presence in the global print and packaging sector.
Founded in 1765, Hubergroup has grown from a small family-owned business to a global leader in the printing inks and chemicals industry, known for its dedication to quality and innovation.
In 2015, Hubergroup celebrated its 250th anniversary, marking its status as one of the world's largest ink manufacturers.
The acquisition deal includes $160 million to refinance Hubergroup's debt and a $150-million equity infusion from Murugappa.
The acquisition is subject to regulatory approvals and is expected to strengthen Hubergroup's market position and support its growth in key international markets.
Hubergroup has been facing significant debt issues. The company planned to take on substantial debt to buy equity in its subsidiaries from its parent company, MHM Holding GmbH. This led to financial challenges, and the company had to extend its repayment deadlines with the help of lenders.
The acquisition by the Murugappa Group includes $160 million to refinance Hubergroup's debt, highlighting the extent of its financial struggles.
The headquarters of Hubergroup is located in Grossenbrode, Germany. This is where the company's main operations and management are based.
Hubergroup is a significant player in the printing inks and chemicals industry. In India, Hubergroup India is the market leader with a 30% market share. The company serves major print media houses, packaging companies, and FMCG clients.
Apart from the this acquisition of Hubergroup, Murugappa Group-owned CG Power has announced plans to raise Rs 3,000 crore through a Qualified Institutional Placement (QIP) to fund acquisitions and capex plans, including its foray into the semiconductor business.
Notably, Murugappa-owned CG Power acquired a 55% stake in GG Tronics India for Rs 319 crore to bolster its railways Business. The company has recently announced a definitive agreement to acquire the radio frequency components business of Renesas Electronics Corporation for $36 million, enabling it to enter the semiconductor design business
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