In Wednesday’s trading session, the share price of the leading integrated manufacturer of the most preferred traditional antioxidants (Shelf Life Solutions), surged 9% to Rs. 113.33, after the company’s wholly-owned subsidiary acquired a 100% stake in a Belgium-based animal food company.
At 11:29 a.m., the shares of Camlin Fine Sciences Limited were trading in the green at Rs. 109.5, up by 5.3 percent, as against its previous closing price of Rs. 103.96, with a market cap of Rs. 1,833.7 crore.
According to the latest regulatory filings with the stock exchanges, Camlin’s wholly owned subsidiary, Dresen Quimica SAPI De CV, Mexico, entered into a Share Purchase Agreement to acquire a 100% stake in Vitafor Invest NV, Belgium.
The deal involves the acquisition of a 100 percent stake in the subsidiaries of Vitafor Invest namely, Addi-Tech NV, Vitafor NV, Vitafor China Limited, Europe Bio Engineering BV, as well as a 45 percent stake in Vial Sàrl.
Vitafor Invest NV is a Belgian company that manufactures and trades in products catering to the animal feed industry and offers a complete range of feed ingredients, nutritional products, hygiene products and disinfectants.
From January 2023 to December 2023, Vitafor generated a turnover of €16.55 million with a loss of €1.18 million (After Tax), and its net worth stood at ~€6.78 million.
Dresen Quimica SAPI De CV is engaged in the business of manufacturing and distributing specialty intermediate chemical solutions used by the feed, food and other industrial products.
As per filings, the product basket of Vitafor will be aligned with the Camlin’s Group and marketing of the basket products will be carried out with the existing customers.
The acquisition can help to grow the product lines of Vitafor with the existing customers, while the Group will use the facility of Vitafor and Vitafor’s network to augment and grow in the European feed and pet food market and also in the African market.
In terms of financials, the company reported a fall in revenue from operations by 5.8 percent YoY from Rs. 426.7 crore in Q4 FY22-23 to Rs. 401.7 crore in Q4 FY23-24, while the after-tax profit fell from a profit of Rs. 3.5 crore to a loss of Rs. 81.8 crore, during the same period.
The stock has delivered negative returns of nearly 34.8 percent in the last one year, and around 17.7 percent of negative returns year-to-date.
Camlin Fine Sciences Limited is engaged in the research, development, manufacturing and marketing of speciality chemicals, ingredients and additive blends which are in the broad product portfolio of Shelf-Life Solutions, Aroma Ingredients, Performance Chemicals and Health & Wellness.
Written by Shivani Singh
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