Acquisition a step forward towards achieving revenues of $8 billion by 2015
Crompton Greaves Ltd (CG), part of the Rs 18,000-crore Avantha Group, has acquired the UK-based electrical engineering company Power Technology Solutions (PTS) for around £30 million (Rs 204 crore).
With this acquisition, CG would gain significant consolidation in the engineering, procurement & maintenance (EPM) segment in the UK and get access to newer markets, said S M Trehan, managing director, Crompton Greaves. The acquisition was a step forward towards achieving revenues of $8 billion by 2015, he said.
Avantha’s Chairman and Chief Executive Officer, Gautam Thapar, said the strategic investment would contribute to the company’s product portfolio and overall growth plans. CG, claims Thapar, is one of the country’s most globalised companies, with half of its assets and more than 50 per cent of sales coming from abroad.
This is CG’s sixth acquisition in the last five years. It first acquired Pauwels, a Belgium-based power transformer maker, for Rs 180 crore and in 2006, it acquired Hungary-based Ganz, a leading manufacturer of extra high voltage transformers, gas insulated switchgear and other related components. In 2007, it acquired Ireland-based transmission and distribution company Microsol Holdings and other group companies for $14.1 million.
In 2008, CG acquired France-based Societe Nouvelle de Maintenance Transformateurs (Sonomatra), a service provider for on-site maintenance and repair of power transformers, on-load tap changers, oil analysis, oil treatment and retro-filling, for around ¤1.3 million. In the same year, Crompton Greaves acquired US-based MSE Power Systems and two of its group firms for $16 million (about Rs 72 crore).
PTS is a high voltage electrical engineering company which provides consultancy, technical and engineering support to regional electricity companies (RECs), including major utilities and distribution network operators (DNOs) in the UK market. The 10-year old PTS has customers such as the largest DNO’s in the UK market like UU, EDF Energy, Scottish Power, Central Networks and CE Electric. It also has a manufacturing facility to produce various electric panels, sources said.
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CG shares rose 2.32 per cent on the Bombay Stock Exchange (BSE) today and closed at Rs 258.40.
| CG’s M&A SPREE # This is CG’s sixth acquisition in the last five years # 2006: Pauwels, a Belgium-based power transformer maker, for Rs 180 crore # 2007: Ireland-based transmission and distribution company Microsol Holdings and other group companies for $14.1 million # 2008: CG acquired France-based Societe Nouvelle de Maintenance Transformateurs (Sonomatra), for around ¤1.3 million # 2008: US-based MSE Power Systems and two of its group firms for $16 million (about Rs 72 crore). |
Meanwhile, Avantha Power and Infrastructure, part of the Avantha Group, filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India to raise up to Rs 125 crore from an initial public offering.
The company has 191 Mw of operational thermal power capacity and has another 2,400 Mw of generating capacity under various stages of implementation. Besides, it has plans to set up another 1,320 Mw of generating capacity in the next phase, said sources.
Enam Securities Private Ltd, Kotak Mahindra Capital Company Ltd, Citigroup Global Markets India Private Ltd and Axis Bank Ltd are the book running lead managers to the issue.