Business

Kalpataru to buy 85% in Swedish firm for $24 mn

Firm to expand in Nordic countries

Kalpataru Power Transmission Limited (KPTL), an EPC player in the power and infrastructure contracting sector, through its wholly owned subsidiary in Sweden viz. Kalpataru Power Transmission Sweden AB has signed definitive agreement to acquire 85% equity stake in Linjemontage i Grastorp AB for an enterprise value of $24 million.

Commenting on the acquisition, Mr. Sanjay Dalmia, executive director, KPTL said, “We continue to expand our geographical reach aligned to our vision of being a local player in the global environment. This acquisition has been carried out on grounds of strategic fit both to capture local market opportunity and to help us in expanding our presence in Nordic countries. This strategic acquisition will also help KPTL with greater access to technology and EPC capability to take turnkey projects in Nordic countries and Europe.

Linjemontage i Grastorp AB, founded in 1993, specialises in power supply solutions and services for electricity networks up to voltage range of 400 kv.

The company mainly operates in three main business areas comprising substation, transmission and local networks and electricity network services with a revenue of about SEK 700 million (about $75 million) in 2018 and has a profitable track record, said a company statement, adding that the company had presence in Sweden and Norway with an order book of about SEK 710 million (about $77 million) as on date.

“Linjemontage has a consistent track record of revenue growth around 15% CAGR over the last five years along with consistent profitability. We look forward to welcoming Linjemontage i Grastorp AB into the KPTL family. Both the companies will leverage each other’s capabilities to deliver significant shareholder value in future,” Mr. Dalmia added.

The acquisition of Linjemontage i Grastorp AB is in line with KPTL’s stated objective of growth and greater geographical presence in stable and growing markets with focus on core power transmission segment. The transaction is expected to close in the first quarter of FY2019-2020, said the statement.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Mar 31, 2020 4:52:59 PM | https://www.thehindu.com/business/kalpataru-to-buy-85-in-swedish-firm-for-24-mn/article26636836.ece

Next Story