Murugappa family’s investment arm to buy Germany's Hubergroup

A consortium comprising Mavco Investments, a private investment vehicle belonging to select members of the Chennai-based Murugappa family, and funds managed by US-based Avenue Capital Group, have inked a deal to acquire Hubergroup, a German speciality chemical and print solutions firm

The acquisition, reportedly at an enterprise value of $310-mn, will see the consortium take full ownership of Hubergroup from Cornelius Treuhand Holding, pending regulatory approval. The transaction is said to include $160-mn to refinance Hubergroup’s debt and a $150-mn equity infusion besides working capital.

The deal follows a competitive bidding process that included Edelweiss and Jindal Poly Films, both of which reportedly sought to acquire Hubergroup with financial backing.

Mr. M.A.M. Arunachalam (also known as Arun Murugappan), Director of Mavco Investments, said, “This collaboration marks our strategic entry into the global print / packaging solutions and allied products. Together with Avenue Capital Group, we are committed to accelerating Hubergroup’s growth in key international markets.

Mr. Pankaj Goel, Head of Partnerships Asia Pacific, and Mr. Rohit Santani, Head of India for Avenue Capital Group, said, “We are excited to partner with Mavco to unlock Hubergroup’s potential in new and existing markets and deliver robust and profitable growth for the years to come. Mavco’s strategic vision and operational expertise combined with Hubergroup’s drive for innovation and growth potential fits perfectly with our approach to back transformative businesses”.

Hubergroup India is the market leader in the Indian printing industry with market share of around 30%, with major print media publication houses along with packaging and FMCG companies as its clients. This company was originally promoted by the Bilakhia Group in 1991. It is now majorly owned by Germany’s Hubergroup, which acquired nearly full ownership by late 2023. The company also manufactures key ink components like adhesives, resins, and pigments at its Vapi, Daman and Silvassa plants. It supplies nearly half its products to India and the rest globally through subsidiaries in countries like the US, Australia and Thailand.