HPL acquires majority stake in Lummus Technology for enterprise value of US$ 2.725 billion

Haldia Petrochemicals Ltd (HPL), flagship company of The Chatterjee Group (TCG), and Rhone Capital, a global private equity firm, have jointly acquired the US-based Lummus Technology from McDermott International for an enterprise value of US$ 2.725 billion.

As per the press statement released by HPL, Lummus Technology is a leading master licensor of proprietary technologies in the refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment and related engineering services. It has around 130 licensed technologies and more than 3,400 patents and trademarks.

Lummus Technology will operate as an autonomous entity with the acquisition.

“This development would accelerate India’s progress towards self-reliance in the materials technology space. HPL, with two decades of experience in manufacturing polymer products and downstream chemicals, would partner Lummus in evolving technological improvements for these segments," added the press statement.

This deal is expected to provide required boost to HPL’s initiative to pivot upstream investments in the 'oil to chemicals' sector.

“Our investments are both strategic and long-term, most of which span 25 to 30 years. We have primarily focused on knowledge-based enterprises, and as such, Lummus is a great addition to our portfolio," Mr Purnendu Chatterjee, founder Chairman of TCG, said in the statement.

State Bank of India was the lead banker in the deal.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.