Sudarshan Chemical Sells VP4 Frankfurt GmbH for EUR 76.5 Mn

Sudarshan Chemical Industries Limited has announced the execution of a definitive Share Purchase and Transfer Agreement for the sale of its 100% stake in VP4 Frankfurt GmbH, a step-down wholly-owned subsidiary. The deal is valued at EUR 76.5 million.

The VP4 plant primarily serves Nutrinova's food additives business, with only a small proportion used by Sudarshan for captive consumption. Post-closing, Nutrinova will supply the required quantity of Diketene to Sudarshan under a long-term supply contract.

This divestment is considered strategic for Sudarshan, allowing it to sharpen its focus on its core pigments business and strengthen its balance sheet. The proceeds from the sale will be primarily utilized for the prepayment of an acquisition loan, aiming to make the company zero net debt or a positive cash company.

The buyer, Celanese US Holdings LLC, is a joint venture partner in Nutrinova, which is the discoverer and producer of the acesulfame-K sugar substitute. Celanese will acquire and operate the VP4 plant for a transitional period before ownership passes to Nutrinova.

The performance of the VP4 Plant for Q1FY27 was EUR 4.1 Mn in revenue and EUR 1.3 Mn in EBITDA, and for FY26 it was EUR 15.7 Mn in revenue and EUR 4.1 Mn in EBITDA.

The deal is expected to close in approximately 2-3 months.