 "Mahindra buys 35% stake in Finnish farm equipment maker Sampo Rosenlew")
Mahindra & Mahindra Ltd (M&M) has agreed to acquire 35 percent equity stake in Finland-based farm equipment firm Sampo Rosenlew for a consideration not exceeding Euro 18 million, subject to customary adjustments, said M&M in a BSE filing today. Through this strategic partnership with Sampo Rosenlew, a combine harvester company, Mahindra & Mahindra has forayed into the global combine harvester business.
Under the transaction, which is expected to close by June 30, 2016, the two companies will work in tandem to grow their combine harvester business globally.
Dr Pawan Goenka, executive director, M&M Ltd, said, “Today, Mahindra is the world’s leading tractor company by volume, with an on ground presence in India, USA, China and Japan, besides many other export markets. We are now putting in place a strategy to build a full product line of farm equipment that goes beyond tractors and with this we will compete globally in both advanced and developing markets.”
A cash positive, profitable company, Sampo Rosenlew is poised for further growth in the global markets. In FY2014-15, Sampo Rosenlew had a stand-alone revenue of Euro 93 million. The company is also a joint venture partner in a combine harvester company in Algeria which had revenues of Euro 45 million in FY2014-15. Further, it has built a significant business in its core markets of Europe, Eurasian countries and North Africa.
Together with its existing strategy in the core markets, Sampo Rosenlew will also develop a new range of combine harvesters for developing markets and for specialty crops. Mahindra and Sampo Rosenlew will jointly focus on the combine harvester business in Asia, Africa and Eurasian Economic Union countries.
Under the transaction, which is expected to close by June 30, 2016, the two companies will work in tandem to grow their combine harvester business globally.
Dr Pawan Goenka, executive director, M&M Ltd, said, “Today, Mahindra is the world’s leading tractor company by volume, with an on ground presence in India, USA, China and Japan, besides many other export markets. We are now putting in place a strategy to build a full product line of farm equipment that goes beyond tractors and with this we will compete globally in both advanced and developing markets.”
More From This Section
Rajesh Jejurikar, president and chief executive, farm equipment & two wheeler, M&M Ltd, commented, “Sampo Rosenlew will enable Mahindra to grow in the global combine harvester business. The two companies will work closely towards taking Sampo’s combine harvesters to new markets globally, including India.”
A cash positive, profitable company, Sampo Rosenlew is poised for further growth in the global markets. In FY2014-15, Sampo Rosenlew had a stand-alone revenue of Euro 93 million. The company is also a joint venture partner in a combine harvester company in Algeria which had revenues of Euro 45 million in FY2014-15. Further, it has built a significant business in its core markets of Europe, Eurasian countries and North Africa.
Together with its existing strategy in the core markets, Sampo Rosenlew will also develop a new range of combine harvesters for developing markets and for specialty crops. Mahindra and Sampo Rosenlew will jointly focus on the combine harvester business in Asia, Africa and Eurasian Economic Union countries.