Crompton acquires Microsol of Ireland

Crompton Greaves, India's fourth largest electrical equipment maker by market value, said it has agreed to purchase Ireland's Microsol Holdings and other group companies.

The "enterprise value'' of the purchase is ¤10.5 million ($14.1 million), the Mumbai-based company told the Bombay Stock Exchange today. Microsol Holdings undertakes the automation of power transmissions systems in the US, the UK and Ireland, Crompton Greaves said.

Crompton Greaves will make its third purchase in Europe in 2 1/2 years and increase access to new markets, taking advantage of India's low labour costs.

In July, Crompton Greaves bought businesses of Ganz Transelektro Villamossagi and Transverticum, both based in Hungary. In February 2005, it bought the transformer business of Belgium-based Pauwels Group.

"They (Crompton Greaves) are trying to become more diversified in that market,'' said Dhirendra Tiwari, an analyst at Batlivala & Karani Securities in Mumbai, who has a "buy'' rating on the stock. He is awaiting more details on Microsol's operations.

The 70-year-old company manufactures power and industrial transformers, circuit breakers, alternators and generators, railway signaling equipment, lighting equipment, fans, pumps and other transmission equipment.

Crompton Greaves has 22 manufacturing operations spread across five states, according to the company's web site.

Microsol provides automation for both new sub-stations as well as "retro-fitting solutions for existing'' ones, Crompton Greaves said, without providing more detail.