Solar Industries India (SOLARINDS) M&A announcement summary

Deal rationale and strategic fit

• Acquisition aims to create an integrated global platform for commercial explosives, blasting, mining, and agriculture solutions, expanding operational, manufacturing, and distribution capabilities worldwide.

• Builds on a decade-long presence in Africa, leveraging Omnia's expertise in mining explosives, electronic detonation, and digital blasting.

• Omnia's agriculture segment adds a technology-driven, sustainable crop nutrition platform, complementing the explosives business.

• Omnia's integrated manufacturing and supply chain infrastructure strengthens vertical integration and cost competitiveness.

• Combined group will offer integrated blasting solutions and deeper customer engagement across key markets.

Financial terms and conditions

• All-cash transaction valued at approximately US $1.355 billion (₹12,951 crores), funded through internal accruals and debt, not equity.

• Omnia's current EBITDA is around $110 million, projected to reach $180 million by FY 2026, excluding synergies.

• Combined entity revenue projected at INR 31,000–32,000 crore and EBITDA at INR 6,800–7,000 crore by FY 2028.

• Net debt to EBITDA ratio is expected to remain below 2x post-acquisition.

• Subject to customary closing conditions, including regulatory and Omnia shareholder approvals.

Synergies and expected cost savings

• Integration of manufacturing, initiating systems, and down-the-hole services expected to drive significant value.

• Synergies projected to boost EBITDA margins to 22–23% for the consolidated entity.

• Enhanced distribution network will expand presence to over 100 countries and manufacturing to 25 countries.

• Enhanced supply security, economies of scale, and technology differentiation expected.

• Broader customer coverage and operational efficiencies through technology innovation and integrated services.