Tata ChemicalsNSE -0.07 % today said it has signed a pact with Allied Silica Limited to acquire its precipitated silica business for Rs 123 crore on a slump sale basis.
The deal is expected to be closed within three months, the company said in a release.
The acquisition is a part of the Rs 295 crore investment approved by the Board in February last year, towards this specialty business, the company said.
The Business Transfer Agreement with Allied Silica includes the acquisition of an existing manufacturing site in Tamil Nadu, which will produce highly dispersible silica (HDS), the release said.
The specialty chemical product represents a downstream value addition to Tata Chemicals soda ash business, where it ranks among the top manufacturers globally, it added.
“This acquisition is another step in our journey to build technologically enabled, differentiated businesses, with greater customer centricity, by leveraging our core strengths.
Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings and agrochemicals.
