Sudarshan Chemical Sells German Subsidiary VP4 for €76.5 Million to Focus on Core Pigment Business

en.Wedoany.com Reported - On September 1, India's Sudarshan Chemical Industries Limited announced the sale of its subsidiary VP4 Frankfurt GmbH to US-based Celanese Corporation for €76.5 million. The buyer is Celanese US Holdings LLC, a subsidiary of Celanese Corporation. The share purchase and transfer agreement was signed on August 31, 2026, and the transaction is subject to customary closing conditions.

VP4 Frankfurt, located in Frankfurt, Germany, primarily produces chemical intermediates such as Diketene and mainly operates as a toll manufacturer for Nutrinova. Nutrinova is a joint venture between Celanese Corporation and Japan's Mitsui & Co.. VP4 Frankfurt entered the Sudarshan system through Sudarshan's acquisition of the Heubach Group, and has been classified as an asset held for sale since the acquisition.

The plant counts Nutrinova as its primary customer, with only a small portion of its output supplying Sudarshan's own use. Diketene is an important intermediate in the production of functional food ingredients and sweeteners, and this asset aligns far more closely with the strategic focus of Celanese and Nutrinova than with Sudarshan's core pigment business. Upon completion of the transaction, Nutrinova will continue to supply the required intermediate materials to Sudarshan.

Financial data shows that for the fiscal year ended March 31, 2026, VP4 Frankfurt generated revenue of €15.72 million, accounting for 6.71% of Sudarshan's standalone revenue and 1.64% of its consolidated revenue; the subsidiary contributed net assets of €5.67 million during the same period.

Sudarshan's Chairman and Managing Director Rajesh Rathi stated: "The divestment of VP4 Frankfurt is a strategic step toward focusing on our core business. Pigments and colorants are where we create the greatest value for our customers. VP4 is a well-run business with an excellent team, and now it transitions to a company it already serves—this is the right choice for the asset, the employees, and Sudarshan."

Sudarshan Chemical is a global leader in color solutions and specialty pigments, serving customers in over 120 countries, with more than 3,900 employees and 20 manufacturing and R&D sites.