Indian Industrial Firm Buys Coal Tar Company Rütgers

Rain CII Carbon, the U.S. subsidiary of Indian industrial firm Rain Commodities, has acquired the Belgium-based coal tar pitch chemicals business Rütgers from the venture capital group Triton for $920 million and contingency payments not exceeding $35 million. Coal tar pitch is derived from the distillation of coal tar. The acquisition will complement Rain CII’s calcined petroleum coke business and extend the firm’s geographical footprint, according to Rain CII CEO Gerry Sweeney. Rütgers is a 160-year-old firm with about 1,000 employees and eight production sites. It generated earnings before interest, taxes, depreciation, and amortization (EBITDA) of $134 million for the year ending on Sept. 30, 2012, from sales of $1.1 billion. Rütgers’ sales have increased about 25% since Triton acquired the business from German chemical firm Evonik Industries in 2008, Triton says.