Structured transaction valued at $100 million (Rs. 520 crore)

The Blackstone Group, a leading private equity player, announced that its affiliate Blackstone Capital Partners (Singapore) is to acquire 12.5 per cent of International Tractors Ltd. (ITL) in a structured transaction valued at up to $100 million (Rs 520 crore).

A part of Sonalika Group, ITL was incorporated in 1995. It has a turnover of around $500 million, and nearly 10 per cent share in the domestic tractor market. It exports to over 70 countries.

It makes tractors under the Sonalika brand from a power range of below 20 HP to over 90 HP. ITL has its manufacturing plant in Hoshiarpur, Punjab.

“Favourable macro-economic trends such as rising minimum support prices and rising labour costs are leading to increased adoption of mechanization by farmers,” Akhil Gupta, Senior Managing Director and Chairman, Blackstone India, said in a statement.

“ITL’s cost effective manufacturing facilities with deep value engineering and strong product development capabilities provide it with a competitive advantage to capture this market,” Mr. Gupta said.

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