The purchase price of €91 million, on a debt-free and cash-free basis, represents an expected acquisition multiple of 7.8x FY20 EBITDA.

Incitec expects the investment to be earnings per share neutral in the first full year of ownership and EPS accretive from then on as synergies are realised.

The company said the transaction was highly complementary to Dyno Nobel's existing operations, providing access to new markets where it could leverage its premium technology offering through substitution and growth strategies.

Titanobel has a strong customer base in the mature and stable European market with exposure to the quarry and construction sector, the growing African hard rock sector and the rapidly expanding mining of future facing minerals in the EMEA region.

Titanobel is supported by a well-established manufacturing base in France, which will be key to the delivery of the Dyno Nobel strategy in the region.

"Titanobel's acquisition will fit well with our strategy of taking our core explosive business, for which we are recognised globally, to new markets," Incitec CEO Jeanne Johns said.

"We are excited for the potential to service new clients and partners with our market leading technology.

"The ability to build on Titanobel's rich history, market position and regional presence is an exciting chapter in our growth journey, and we look forward to welcoming the Titanobel team to IPL.

"This acquisition further demonstrates the opportunities we have to grow our two high quality businesses and position them for the future."

Incitec expects the deal to close in June.

Shares in Incitec last traded at A$3.36 in Sydney, valuing the company at $6.4 billion.