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hodia has signed a binding agreement to acquire Indian PI Polymer, the engineering plastics business of public-listed PI Industries. This transaction supports the French group's ambition to attain 15% share in the Indian polyamide compound market by 2015.

PI Polymer forecasts about US$13 million sales revenue for its fiscal year 2010/11. The acquisition price represents an estimated 2010/11 EBITDA multiple of around seven times. The transaction includes all the assets used and held by PI Polymer, primarily one industrial facility that employs more than 80 people, R&D capabilities, customer base and logistics network in India. Subject to various customary closing conditions, the completion of the transaction is expected to be finalised by the end of March 2011.

This acquisition will strengthen the group's presence in India, where Technyl engineering plastics are already imported. Rhodia has operated in the country since 2001 through its surfactants business, serving the home & personal care and coatings markets.