Blue Star eyes city-based firm

Central air-conditioning and commercial refrigeration player, Blue Star Ltd is planning to strengthen its air-conditioning projects business through the strategic acquisition of the businesses of Naseer Electricals, a Bangalore-based electrical contracting firm as a going concern.

With this move, Blue Star will also be in a position to deliver integrated mechanical, electrical & plumbing (MEP) contracting projects for the commercial building and infrastructure segments.

The Rs 1,600 crore Blue Star, according to industry information, will pay Rs 100 crore for this acquisition. Naseer Electrical has a topline of Rs 107 crore and has a strong presence in South India and has executed several projects in the IT, ITeS, infrastructure and retail segments.

According to a statement from Blue Star, the growing Indian economy and the construction boom offer attractive business opportunities in the MEP contracting space.

"Moreover, many customers of Blue Star are seeking electrical contracting services from the company. While Blue Star will continue to focus on its core businesses of air-conditioning and commercial refrigeration as a manufacturer, contractor and service provider, it intends to further enhance its capabilities in the MEP space by entering electrical contracting through this transaction," the statement added.

The board of directors of Blue Star in its meeting held on December 5, 2007 has authorised a four-member committee headed by Suneel M Advani, Vice Chairman and Managing Director, to finalise the Definitive Business Purchase Agreement, and conclude the transaction on or before December 31, 2007 subject to final Due Diligence.