New Delhi-based Earth Water Group (EWG) is acquiring soaps-to-software major Wipro’s water purification and treatment business. The deal size is likely to be between Rs 45- Rs 50 crore and a formal announcement is due in a fortnight, as per an ET report.
The acquisition is happening at the time when CLSA Private Equity Management Ltd invested $15 million (Rs 83 crore) in Earth Water Group for a 20 per cent stake on Monday. As part of the deal, Sanjeev Krishnan, director of CLSA, joined the board of Earth Water Group.
The money raised from CLSA will be used for this fresh acquisition and also be used to meet working capital requirements.
Earth Water Group consists of three companies in the water sector. Fontus Water Pvt. Ltd executes water and waste water treatment projects for industries, buildings and municipal segments. Aventura Components Pvt. Ltd supplies water & wastewater treatment components to OEMs across India. EA Water Pvt Ltd provides knowledge and marketing platform for the water sector, offers publishing, events, consulting and recruitment consulting services under the EverythingAboutWater brand.
Wipro Infrastructure Engineering Ltd, a subsidiary of Wipro Ltd, had acquired Aquatech Industries India Pvt Ltd for an undisclosed amount in 2008 and entered into the water business. Post transaction, Acquatech Industries was renamed as Wipro Water, a part of the Wipro Infrastructure Engineering Ltd.
(Edited by Prem Udayabhanu)