United Technologies, the US-based $54 billion diversified aerospace and building systems provider, is likely to acquire Bangalore-based Firepro Systems for around $200 million. FirePro Systems, with a topline of Rs 700 crore is among the established players in India offering integrated solutions for fire protection, security and building management systems.
According to investment bankers close to the development, Firepro is likely to be acquired by the UTC Fire & Security, a $6.5 billion arm of United Technologies. UTC Fire & Security helps commercial, industrial and residential customers manage fire and security challenges.
In addition to UTC Fire & Security, United Technologies has marquee companies — Carrier heating and air conditioning, Hamilton Sundstrand aerospace systems and industrial products, Otis elevators and escalators, Pratt & Whitney aircraft engines, Sikorsky helicopters and UTC Power fuel cells.
According to investment bankers close to FirePro Systems, there has been immense interest from strategic players and buyout funds to take control of the company which is growing at a healthy pace.
The company is looking to touch a topline of Rs 1,000 crore during the ongoing fiscal and has an impressive list of clients across various parts of the globe.
Investment bankers further indicate that the FirePro Systems chairman and MD N S Narendra after exploring all options of raising strategic growth funds and offloading controlling stake to a strategic player is understood to have decided for the latter. Ernst & Young is understood to be running the mandate on behalf of FirePro Systems. Narendra is likely to retain some residual stake post the acquisition. While United Technologies didnot respond to queries, Firepro management were not available for comments.
FirePro Systems had earlier raised Rs 200 crore in two stages from private equity funds.
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During late 2009, Standard Chartered Private Equity had invested Rs 150 crore and earlier during early 2006 had raised Rs 50 crore AIG.
UTC Fire & Security has been growing through acquisitions in India. During 2005, it acquired Kidde Fire in Mumbai (previously known as Vijay Fire). In 2006, it acquired a 60 per cent share in Chubb Alba (previously known as Alba Controls), which today is a Lenel value-added reseller. In 2010, the company acquired the former GE Security business and, most recently, UTCFS opened its new India Innovation & Engineering Center located in Hyderabad.
Founded in 1992, Firepro empoys 1,400 people and has so far executed 1,500 projects across a range of sector spanning aviation, rail networks, oil and gas, education, banking, technology, healthcare, hospitality among many others.