Anupam Rasayan held its US Acquisition Update Conference Call to discuss the strategic acquisition of Jayhawk Fine Chemicals, rationale, synergies, funding structure, customer response, integration roadmap and management outlook. The management emphasized strategy alignment, platform strengthening, forward integration benefits, US presence, performance materials expansion and long-term growth positioning.
Key Highlights / Key Financial Highlights
- Signed definitive agreement on 9 December 2025 to acquire 100% equity in Jayhawk Fine Chemicals, USA
- Jayhawk is a specialty chemicals and CDMO player with advanced chemistries and strong global customers
- Strengthens US onshore manufacturing presence and supply chain resilience
- Enhances performance materials portfolio including dianhydrides and polyimide intermediates
- Strategic access to semiconductors, aviation, EV, automotive and electronics sectors
- Supports forward integration along with earlier Tanfac backward integration
- Positioned to benefit from geopolitical shifts including US Biosecure Act
- Expected to be EPS accretive from day one
- Pro-forma combined revenue approximately USD 243 million and EBITDA approximately USD 61 million
- Jayhawk CY24 revenue approximately USD 78 million with ~19% EBITDA margin
- About 65% revenue from performance materials and remaining from life-science related molecules
- Large US site with nearly 3 million square meters including pilot plant capability
- Adds complex process capabilities including Suzuki coupling, azochemistry, Grignard and high-temperature oxidation
- Enterprise value approximately USD 134 million
- Total purchase consideration approximately USD 150 million including ~USD 16 million cash on Jayhawk balance sheet
- Funding: ~USD 40 million via internal accruals and debt; ~USD 110 million via Class B non-voting shares from a global investment firm
- Anupam to fully consolidate Jayhawk financials
- Integration supported by experienced Jayhawk management team and consulting PMO model
- Significant land availability enabling future expansion
- Positive customer response and interest post announcement
- Working capital cycle around 90–100 days; returns profile in mid-teens
- Jayhawk owned earlier by CABB Group backed by Permira, exiting due to investment lifecycle
- Management reiterates confidence in execution and integration based on Tanfac experience
GOOD
- Strong strategic fit with long-term global CDMO positioning
- Immediate US manufacturing footprint
- Strengthening of performance materials portfolio
- Access to high-growth end markets like semiconductor, aviation, EV and electronics
- Proven synergies with Tanfac backward integration and Anupam cost-efficient base
- Established customers, long-standing relationships and contracts
- EPS accretive potential from day one
- Meaningful opportunity for cross-sell and platform expansion
- Positive early customer reactions
BAD
- Large and complex cross-border acquisition execution requirement
- Need for structured integration across geographies
- Private equity seller exit timing rather than organic transition
IMPROVING
- Portfolio diversification across geographies and segments
- Supply chain strength and customer stickiness
- US revenue contribution and positioning
- Platform readiness for global CDMO opportunity
WORSENING
- No worsening elements highlighted by management in the call
Management Outlook
Management highlighted confidence in integration, value creation, synergy realization, customer engagement, performance material growth, US market entry, long-term positioning and strategic platform strength. The company expects to leverage Jayhawk capability, team expertise, technology strengths and land availability to scale responsibly over time.
Analyst Takeaways
The acquisition is positioned as transformative, strategically aligned and capability-enhancing. It strengthens US presence, expands performance material capabilities, supports forward integration, leverages geopolitical shifts and aims to create a global specialty and CDMO platform with diversified revenue, customers and geographies.
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FAQ
Q1: What was discussed in the Anupam Rasayan US Acquisition Update Call?
The call discussed the Jayhawk acquisition rationale, strategic fit, funding, financial profile, capabilities, synergies, integration roadmap, customer response and management outlook.
Q2: What revenue and margin profile was mentioned for Jayhawk in the call?
Jayhawk reported approximately USD 78 million revenue in CY24 with approximately 19% EBITDA margin.
Q3: How is the acquisition being funded according to the call?
Approximately USD 40 million via internal accruals and debt and approximately USD 110 million via Class B non-voting equity investment from a global investment management firm.
Q4: What strategic benefits did management highlight in the call?
US onshore presence, performance materials expansion, forward integration, diversification, access to high-growth sectors, enhanced customer engagement and supply chain resilience.
Q5: What is the management tone and confidence level from the call?
Management expressed strong confidence in integration, execution, synergy realization and long-term value creation supported by prior successful Tanfac integration experience.
