General Electric Company (GE) has acquired controlling stake in the Vadodara-based terminal automation solutions provider Advanced Systek Pvt Ltd for an undisclosed amount, the latter informed in a statement issued on Thursday.
"We found an attractive growth prospect in selling the majority stake to the General Electric Company. The deal has been closed and GE would have controlling holding in Advanced Systek," said Mukesh Kapadia, promoter director of Advanced Systek.
'The current shareholders and GE have entered into agreements pursuant to which the promoters of Advanced Systek would continue as directors in the combined entity and work with GE to grow the current business,' Advanced Systek informed in the official statement.
In its filing with the New York Stock Exchange (NYSE), GE informed that it agreed to acquire a majority stake in Indian engineering company Advanced Systek Pvt. Ltd. However, it did not reveal the size of the stake it agreed to buy or the deal value.
Advanced Systek controls nearly 60 per cent market share in the automation and flow-metering systems for the oil and gas sector. "We have been the market leader with over 60 per cent market share and with GE taking controlling stake, we can look for increased global presence," added Kapadia.
GE, in its statement, informed, "This transaction enables the GE Oil & Gas business to broaden its offerings for the industry."
Advanced Systek provides total solutions to customers, allowing them to accurately measure, automate and control the distribution of their products from refineries to the end users.
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According to Kapadia, company has some of the noticeable clients including HPCL, BPCL, IOCL in India.
"We have also strong customer base in Gujarat, where we cater to refineries, ports, depots, rail wagon and port terminals at places like Kandla, Mundra, Rajkot and Ahmedabad," Kapadia said.
Avendus Capital, and Shah Sanjeev & Associates from Vadodara were the financial advisors to Advanced Systek for this transaction.
"This deal is an important milestone in the merger & acquisition space in India. This is a proof that Indian companies continue to attract global majors to achieve a common goal of growth and progress," said Sanjeev Shah of Shah Sanjeev & Associates, a Vadodara-based M&A and corporate advisory services provider.