Mumbai-based Blue Star, the Rs 2,000 crore central airconditioning and commercial refrigeration firm, has acquired Bangalore-based Naseer Electricals for a consideration of up to Rs 42 crore.Blue Star will be making an upfront payment of Rs 24 crore, Rs 10 crore will be paid for debt and the rest Rs 8 crore will be in an escrow amount and will be released over a period of one year based on earnings of the target company. Naseer Electricals is an electrical contracting firm with a turnover of Rs 107 crore (FY07) and a strong presence in South India. The current order book is approximately Rs 100 crore - majority of which is expected to be executed over a period of one year. With this acquisition, Blue Star gets capability to deliver integrated mechanical, electrical & plumbing (MEP) contracting projects for the commercial building and infrastructure segments.Suneel M Advani, vice chairman & MD, Blue Star, said: "The growing Indian economy and the construction boom, specifically in the infrastructure, hospitality, healthcare, IT & ITeS segments, offer attractive business opportunities in the MEP contracting space."He further said that many customers of Blue Star have been seeking electrical contracting services from the company, and this acquisition will fill that specific gap. In addition to this acquisition, Blue Star is also scouting to acquire specialised plumbing contractors.
