Engineering solutions company Hindustan Dorr-Oliver today said it has acquired UK-based heavy engineering company DavyMarkham for 9.5 million pounds (about Rs 65 crore).
The acquisition provides Hindustan Dorr-Oliver Ltd (HDO), part of Hyderabad-based IVRCL Infrastructure and Projects, an entry into the heavy engineering space, it said in a filing to the National Stock Exchange.
DavyMarkham is a 180-year-old manufacturing company based in Sheffield, UK. It is engaged in designing, manufacturing and assembling large equipment used in mining, quarrying, power generation, oil, gas and nuclear sectors.
DavyMarkham's Managing Director Kevin Parkin and financial director Duncan Hay will continue their current roles along with the management team, the Indian firm said.
"DavyMarkham was on the verge of closure four years ago, but with the financial support of our buyout partner, Endless, we have been able to turn around the business and make it an attractive acquisition prospect," Parkin said.
"HDO paid 9.5 million pounds towards 100 per cent, which include 8.5 million towards equity value and 1 million pounds towards the shareholder loan," the Indian entity said.
DavyMarkham has around 13 million pounds order book in mining and power, mainly from North America and the European customers. HDO is looking at marketing the products in Indian market, it further said.
Shares of HDO surged 4.78 per cent and were trading at Rs 195.10 in the afternoon trade on the NSE.
