Investor Presentaiton
Leverage Mexico acquisition to expand presence & product basket
Mexico acquisition offers significant synergies with CFS
About the acquisition
US$ 000s
CY14
CY15
DRESEN
CFS, through a WOS, acquired 65% of Dresen Quimica for a consideration of USD 7.8mn
The company was acquired along-with its group companies as under:
■
Inustrias Petrotec de Mexico (Mexico)
Nuvel, S.A.C (Peru)
Britec, S.A. (Guatemala)
Net Sales
14,799
16,458
Operating Profit
975 2,012
Operating Profit%
6.6% 12.2%
PBT
1,283 2,625
Inovel, S.A.S (Colombia)
■ Grinel, S.A. (Dominican Republic)
PBT%
8.7% 16.0%
The transaction was completed earlier in May and full impact of the same will be visible in quarter
ended September 30, 2016
Net Worth
6,563
7,889
About Dresen
Potential synergies with CFS
engaged
in
the
Leading
Central
American
company
research, development, manufacture and sale of specialty chemicals
Organized in two main business segments:
Animal
Feed
and
Food
Human
segment
manufactures
adsorbents, antioxidants, bactericides, binders, mold inhibitors and acidifying
agents; one of the larger suppliers in its key markets
☐
Industrial Products segment
Operations across Mexico, Central America and parts of Latin America
Cross-sell products – Dresen has a well regarded animal nutrition business and CFS
will market the same across other geographies; similarly CFS products can be
marketed by Dresen
-
Improved vertical integration Dresen uses the diphenols as raw materials; the
acquisition helps Dresen secure raw material and secures supply contracts for CFS
Improved margins for CFS on account of higher value addition done by Dresen
• Improved geographical reach to service global MNCs locally
.
Technical know-how in animal nutrition which can be leveraged across the CFS group
to provide better products and services to customer
• Strategically located manufacturing facility
Mexico offers significant synergies with CFS and can improve CFS' product basket, geographical reach and profile amongst potential customers
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CFS Camlin
Fine SciencesView entire presentation