Bangalore-based Rs 765 crore Kirloskar Electric Company (KEC), a manufacturer of electrical equipment, today announced the acquisition of Germany's Lloyd Dynamowerke GmbH & Co KG (LDW). LDW, a former member of AEG, manufactures electrical rotating machines and drive systems. Its clientele includes Siemens, Alsthom, Thyssen Krupp and Gottwald. The acquisition cost is, however, not available.
For the year ended December 31, 2007, LDW's revenues were $78 million. It is a profitable entity with positive operating cash flows and growth trends, a company press release said.
In 2006, the private equity company, CMP Fonds I GmbH from Berlin, Germany had acquired the majority ownership of LDW and provided additional capital to the manufacturer of motors, generators and drive systems.
"This acquisition is of strategic interest to us. It will give Kirloskar Electric complementary engineering skills, a unique footprint in Europe and an important customer base built over the last few decades", said Vijay Kirloskar, Chairman and Managing Director of KEC.
KEC has factories located in Bangalore, Mysore, Hubli, Pune and Tumkur. The company has over 30 sales offices in India and offices in Singapore, Malaysia and the UAE.
"KEC will benefit from LDW's technology and ongoing research work with German universities. KEC will be able to sell LDW's products under the AEG brand name in the Indian subcontinent and ASEAN countries and address the market for high voltage electrical machines over 50 Megawatts", Kirloskar said.
P S Malik, Joint Managing Director of KEC said, "Utilizing the company's existing widespread market reach Kirloskar Electric would distribute LDW products in India and South East Asia and would leverage on LDW's presence in Europe to sell its products in that market. The synergies generated out of this acquisition will have a multiplier effect on the competitiveness of both companies".