Paris-headquartered Bureau Veritas has signed an agreement to acquire Mumbai-based Sievert India Pvt Ltd, a non-destructive testing and related industrial inspection services provider in India and the Middle East, for an undisclosed amount. The transaction is expected to be completed in May this year, subject to regulatory clearance.
Established in 1986 by first-generation entrepreneur Sudhakar Rao (an alumnus of NIT Warangal), Sievert caters to industrial sectors and primarily focuses on the oil & gas industry. It has a strong presence in India, the South-east Asia and the Middle East.
The company specialises in non-destructive testing services ranging from X-ray and Gamma ray radiographic testing to ultrasonic testing, corrosion mapping and remote video inspection. These services are notably provided during the construction of onshore and offshore pipelines used for oil, gas or water distribution. Non-destructive testing is a group of analysis techniques used to evaluate the properties of a material, component or system without causing any damage.
Sievert has 1,400 employees on board and reported revenues of around $33 million (Rs 178 crore) in 2012.
The current acquisition is expected to expand Bureau Veritas’ footprint in India and the Middle East. The company plans to leverage Sievert’s geographical network and diversify to more sectors.
PwC acted as the sole financial advisors to Sievert India on this transaction.
Commenting on the deal, Bureau Veritas CEO Didier Michaud-Daniel said, “Non-destructive testing is an attractive market, estimated at $3.5 billion, with a growth rate of around 9 per cent per year. Demand is driven by growing needs, both in mature economies that are facing challenges related to ageing infrastructure, and in new economies investing in the construction of industrial facilities. In this context, the acquisition of Sievert is a great opportunity to reinforce our market position and expertise and keep delivering value-added services to our industrial clients.”
In 2011, the French company acquired Bangalore-based Civil-Aid Technoclinic Pvt Ltd for an undisclosed amount.
(Edited by Sanghamitra Mandal)