Kiri Dyes and Chemicals Ltd (KDCL), a leading Ahmedabad-based dyes and intermediates player, announced the acquisition of the U.S. operations of DyStar Group for $10 million. After acquiring Germany`s DyStar Group`s global operations in March this year, KDCL went on to acquire the group`s U.S. operations through its wholly owned-subsidiary Kiri Holding Singapore Pvt Ltd.
Manish Kiri, Managing Director, KDCL, said, “It is our intention to build a sustainable dyes and chemicals global oganisation. For that, we needed a powerful sales organisation in North and Central America and maintain the retailer connection.”
According to Kiri, Kiri-DyStar will now act as a global consolidator of the dyes business, aggressively cutting costs, coupled with off-shoring of production.
“As has been demonstrated by our two DyStar purchases this year, we are deep-value buyers, who look to buy assets with great brands and good distribution, all at rock bottom prices,” adds Kiri. The DyStar group is expected to save direct costs of over $70 million in over two years mainly on account of reduction of employee costs and transfer of production to a low-cost region.
The U.S. operations of DyStar generates revenues of more than $100 million. The acquisition will boost the company`s consolidated revenues to $1 billion in fiscal 2011.
Ruan Weixiang, co-chairman and co-owner of DyStar, said that he was confident the acquisition would generate more value to its customers around the world with improved quality and solutions.
DyStar is a leader for dyes, dyes solutions, leather, performance chemicals, new technologies and custom manufacturing of special dyes and pigments with about 21 per cent market share globally. It provides high quality products and services across the whole value chain in various sectors like apparel, hosiery, automotive, carpets and home upholstery as well as industrial fabrics.
It has sales and technical support presence in all key markets; agencies in 50 countries and 17 production facilities in 14 countries with a total employee strength of around 2,450.