Nirma to buy US-based soda ash producer

Detergent maker Nirma Ltd said on Tuesday it has entered into an agreement for acquiring a US-based soda ash producing company for an undisclosed amount.

Nirma Ltd informed the Bombay Stock Exchange that it would purchase Searles Valley Minerals Operations and Searles Valley Minerals Inc (collectively known as SVM) from US-based private investment firm Sun Capital Partners Inc and other minority shareholders.

HSBC Securities and Capital Markets (India) Pvt Ltd advised Nirma on the acquisition of the natural soda ash manufacturer, while J P Morgan Securities Inc was advisor to SVM.

The

definitive agreement is, however, subject to customary regulatory clearances, Nirma added. SVM has three manufacturing facilities located at Argus, Trona and Westend, California.

The firms total mineral reserves are in excess of 600 million tons, sufficient for 300-400 years of production. SVM has a combined production capacity of over 1.9 million tons.

SVM also has a 67 MW per hours co-generation power plant, a short line railroad and a joint venture in port operations at the Port of Long Beach. Shares of Nirma were trading at Rs 219.50, up 6.79 per cent in the afternoon trade on BSE.