Pennar Industries acquires Wayne-Burt Petro Chemicals
Pennar Industries, a leading engineering firm, has acquired assets of Chennai-based hydraulics cylinder manufacturing firm Wayne Burt Petro Chemicals for an undisclosed sum.
"Pennar Industries has acquired production, engineering, product development programme and existing customer relations of Wayne Burt. The production facility (of Wayne Burt) in Chennai is able to produce 2,25,000 cylinders per annum," the company said in a statement today.
It added that Wayne Burt has a globally trained technical team, strong design and engineering capabilities and an experience of catering to supply chain in North America and India, which will provide a solid foundation for Pennar's plans to enter into the hydraulic equipment business.
Wayne Burt Petro Chemicals was earlier known as Bailey Hydropower Pvt Ltd.
Commenting on the deal, Pennar's President and CEO Suhas Baxi said, "This deal is a step towards creating a more diversified product and solutions portfolio ... Bailey Hydro products already have a market in North America and allow Pennar to have a footprint in global market."
He further said that Pennar intends to invest in technology, manufacturing and market development to emerge as one of the top three players in the hydraulic systems business in India, which is currently estimated at about Rs 2,900 crore and is expected to to grow to Rs 4,000 crore in next 5 years.
Wayne Burt group's founder and CEO T G S Mahesh said, "Pennar with its diversified engineering manufacturing capabilities is an ideal business partner to augment our growth plans in Defence and Aerospace business' hydraulic cylinder requirements."
Merisis Advisors, a mergers and acquisition focused investment banking advisory firm, were the advisors to the transaction.
Pennar Industries is a leading engineering firm with diverse product offerings, which includes manufacturing of value-added steel products. Its products find application in diverse segments such as railways, automobiles, building and construction.
It also has two subsidiaries PEBSL and Pennar Enviro. While PEBSL is engaged in the design, manufacture, supply and installation of pre-engineered steel buildings and building components, Pennar Enviro deals with water and environment business and provides turnkey solutions.
In 2012-13, the company had reported a net profit of Rs 31.14 crore and revenues of about Rs 848 crore.
Following the announcement, shares of the company rose 2.42 per cent today to close at Rs 23.25 a piece on the BSE.