Coimbatore-based Elgi Equipments Ltd has acquired a 100 per cent stake in Patton’s Inc, based in Charlotte, USA.

It was only in August-end Elgi announced that it had acquired 100 per cent share in Rotair S.p.A based in Italy which is into design, manufacture and distribution of compressor and allied products with a turnover of euro 15 million.

Patton's is engaged in the distribution of industrial compressors and air products and is involved, through a subsidiary, in the business of engineering and assembling of air products for medical use with distribution across the country. The company’s annual turnover is $41 million, with significant market presence in Southeastern United States, Elgi said in its filings with the stock exchanges.

Elgi said the acquisition would provide it with a “ready and well entrenched distribution” and service reach that would enable it to build a “larger sustainable business with its wide product portfolio”. It would add to Elgi’s product profile medical line of products which can be “leveraged in other markets in the future as well”. The present management team of Patton's would continue to run the operations.

Elgi said that the acquisition finance was arranged by HSBC Bank, India, Commercial Banking team through HSBC Bank, USA, without disclosing the actual amount involved in the acquisition. Elgi’s Managing Director Jairam Varadaraj is currently in the US in connection with the deal.

In both instances, Elgi has targeted closely held companies and has left the existing management undisturbed post-acquisition of 100 per cent stake.

Elgi, established in 1960 as a service station equipment and reciprocating compressor manufacturing company, has now an expanded product profile including rotary compressors, reciprocating compressors centrifugal compressors, automotive equipment, diesel engines and manufacturing and engineering services.

Elgi’s share price remained flat in the BSE at Rs 87 (face value Re 1) with a trading volume of about 3,900 shares.

Related Topics