Vivimed expects its acquisition of James Robinson to increase its global presence.

Indian specialty chemicals company Vivimed Labs Limited has announced it is to acquire UK chemicals company James Robinson.

Vivimed, a manufacturer of specialty chemicals for the personal care industry, will pay around US$25 million (£13m) for the company, which is a subsidiary of Yule Catto & Co plc.

According to Vivimed, $17.15m plus the working capital amount in cash will be paid at completion, whilst a further $4m will go into escrow pending successful completion of certain product transfer arrangements.

Vivimed said it expects the deal will help increase its presence in the global speciality chemicals market, as well as providing new business opportunities.

James Robinson develops, manufactures and supplies photographic and photochromic chemicals, as well as general and hair dyes. In the 12 months to 31 December 2006, it generated sales of £17.8m, an operating profit of £0.82m and gross assets of £3m.

The deal is dependent on Vivimed obtaining shareholder approval and so is expected to be completed by mid-April 2008.

Vivimed said the existing James Robinson management team, led by Dr Richard Smith, will continue to run the business.

By Natasha Piscitelli