Image Source: Bastion Research
Global corrosion-resistant technologies and engineered systems leader GMM Pfaudler Ltd., announced today that its acquisition deal for SEMCO is expected to close in Q2 FY26, as part of its overall strategy to consolidate business and create a high-margin mixing venture.
Following the takeover, GMM's mixing operations are projected to generate $60 million of revenue and $8 million of EBITDA, and the margins are set to be similar to its existing mixing operations. The firm has been working aggressively to optimize its global manufacturing platform, with the closure of its Leven, UK facility and the addition of low-cost capacity in Poland.
Key Highlights
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SEMCO Transaction: Expected completion in Q2 FY26 (July–September 2025), pending final regulatory approvals.
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Mixing Business Outlook: Post-acquisition, the business is expected to generate $60 million in revenues and $8 million in EBITDA.
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Margin Guidance: Mixing business EBITDA margins are expected to be comparable with current levels, reflecting operational stability.
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Strategic Fit: The transaction fits GMM's diversification plan into high-growth areas like water treatment, fermentation, and petrochemicals.
Broader Financial Context
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GMM posted FY25 consolidated revenue of ₹3,199 crore and EBITDA of ₹381 crore.
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Free cash flow improved to ₹318 crore, with net debt-to-equity reduced to 0.2x.
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The firm is investing in a multi-year transformation plan for profitability enhancement and global competitiveness.
Sources: GMM Pfaudler Investor Presentation, The Hindu Business Line, CNBC TV18, Business Today, Trendlyne
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