PE firm in first foreign deal

ICICI Venture-controlled entity acquires Austrian company for $100 million.

After the spate of overseas acquisitions by Indian companies, domestic private equity firms are getting into the game. VA Tech Wabag India, controlled by ICICI Venture, has acquired VA Tech Wabag GmbH of Austria from Siemens for about $100 million.

In 2005, ICICI Venture had acquired the majority stake in VA Tech's water business in India and Siemens had acquired the parent Austrian company.

"This is a pioneering transaction in which a company owned by an Indian private equity firm has acquired its erstwhile parent. It will now emerge as a global water company," said Sumit Chandwani, director-Investment, ICICI Venture, confirming the transaction.

He however declined to divulge details or confirm the cost of the acquisition. VA Tech Wabag India provides water treatment solutions to domestic public and private sector companies.

The Austrian company has a presence across the globe with a business volume of over €100 million (Rs 560 crore). VA Tech Wabag India, based in Chennai, is a Rs 400 crore company with presence in India and other Asian markets. Its order book is worth over Rs 800 crore.

Through the acquisition, VA Tech Wabag would emerge a multinational company with businesses in Europe, Asia, Africa and Australia. It is also set to regain its position among the top three companies in water management in the world with the global operations managed out of the Chennai office.

Set up in 1996, VA Tech India was a wholly-owned subsidiary of VA Tech Wabag GmbH, Austria. Two years ago, Siemens acquired the Austrian company while ICICI Venture took a majority stake in the Indian company with a management group headed by Rajiv Mittal holding a minority stake. ICICI Venture funded the management team of VA Tech India to buy out the Indian company from its Austrian parent.

VA Tech India is an engineering services company focused on water and waste water treatment with its differentiator being technology.

With its presence in drinking water, municipal wastewater, industrial water, industrial wastewater and desalination, VA Tech India claims to be a leader in the industry.

It has executed projects across the country for diverse applications in both the municipal and industrial segments.