Tata Chemicals To Buy Novabay For Rs 260 Crore; Tap Non-Cyclical Products
Tata Chemicals International Pte. signed a share purchase agreement for 100% equity shares of Novabay for an enterprise value of 25 million euro,
Tata Chemicals Ltd. on Friday announced it will acquire Singapore-based Novabay Pte., a manufacturer of premium grade sodium bicarbonate, for 25 million euro or around Rs 260 crore.
Subsidiary Tata Chemicals International Pte. signed a share purchase agreement for 100% equity shares of Novabay for an enterprise value of 25 million euro, which is subject to net debt, net working capital and other customary adjustments, according to a stock exchange filing.
No governmental or regulatory approvals are required for the proposed acquisition. The deal is likely to be completed by March 2026.
Non-Cyclical Product Segments
Novabay, a wholly-owned subsidiary of France-based Novacarb, is primarily engaged in the business of manufacture and sale of premium grade sodium bicarbonate serving pharma, food, personal care in Europe, Americas, Oceania, ASIA, Middle East and ASEAN markets. The company was incorporated in November 2015.
The total turnover in calendar year 2024 was 29.49 million Singapore dollar.
The company holds key cGMP, API, and related certifications, supported by a fully automated facility. Its current capacity is approximately 60,000 tons with a potential to expand to 100,000 tons..
"Novabay’s focus on premium-grade sodium bicarbonate aligns seamlessly with TCL’s strategy to expand its presence in high-value, non-cyclical product segments. This acquisition strengthens TCL’s capabilities in specialty bicarb market and enhances our ability to serve premium customer requirements," said Tata Chemicals Managing Director and CEO Ramakrishnan Mukundan.
The premium-grade sodium bicarbonate market benefits from steady demand in healthcare, personal care, and food sectors. Rising haemodialysis needs, improved access to medical care, and growing consumption in emerging markets drive this demand, according to the company.
Earlier this week, Tata Chemicals raised Rs 1,500 crore through the allotment of non-convertible debentures (NCDs) on a private placement basis.
Shares settled 1.7% higher at Rs 761.2 on the BSE, ahead of the announcement, compared to a 0.5% rise in the benchmark Sensex. The stock is down 27% so far this year.
