Pitti Engineering Ltd. (PEL) said it had signed a definitive agreement with Bagadia Chaitra Industries Private Ltd. (BCIPL) and its shareholders to acquire 100% of the equity share capital of BCIPL at an enterprise valuation of ₹124.92 crore.
“The cost of acquisition would be arrived at by adjusting the enterprise value for the net debt and working capital changes on the closing date and subject to other adjustments that are mutually agreed between the parties,” PEL said in a statement.
As part of the overall consideration, PEL will infuse upto ₹40 crore as funding into BCIPL on closing date to repay the existing debt in BCIPL, it said.
Akshay S Pitti, Vice-Chairman and Managing Director, PEL said, “We have always believed in continuously adding production capacity at strategic locations and enhancing our value proposition to our valued customers.”
“The acquisition of BCIPL is an important step in this direction as it is strategically relevant, provides enhanced operational strength and adds customer base,” he added.
BCIPL is a manufacturer of electrical laminations and aluminum die cast rotors for AC/DC motors, alternators, pumps, home appliances and electric vehicle industries with major geographical exposure to south Indian market.
It operates out of Tumkur district, Karnataka where it has manufacturing facilities with an installed capacity of 18,000 tonnes per annum.
PEL said this acquisition would help it broaden its presence in South India, add to the overall asset base and production capacity, provide entry into new end use sectors and add new customers.
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