Haldia Petrochemicals acquires Lummus Technology for $2.7bn

The deal is expected to accelerate India's progress towards self-reliance in materials technology, Haldia Petrochemicals said.

The Chatterjee Group flagship company Haldia Petrochemicals and global private equity firm Rhone Capital acquired Texas based Lummus Technology from McDermott International for an enterprise value of $2.725 billion.

In this joint acquisition, Haldia Petrochemicals' share is at 57 per cent, the balance would be held by Rhone Capital. Lummus Technology will function as a standalone autonomous entity, Haldia Petrochemicals said. The deal is expected to accelerate India's progress towards self-reliance in materials technology, it added.

Lummus Technology is a master licensor of technologies in the refining, petrochemicals, gas processing and coal gasification sectors, as well as a supplier of proprietary catalysts, equipment, and related engineering services. The US firm has around 130 licensed technologies and more than 3,400 patents and trademarks.

Post buyout, Lummus Technology and Haldia Petrochemicals plan to provide 'value proposition' to the US company's clients in India and abroad.

Houston based McDermott will use the proceeds to repay debtor-in-possession financing as well as fund emergence costs besides providing cash to its balance sheet.