Fuji Electric Co. Ltd has agreed to acquire Consul Neowatt Power Solutions Pvt. Ltd, a Chennai-based maker of power backup equipment, from private equity fund Peepul Capital and some individual shareholders.
The Japanese electrical equipment maker said in a statement it will use Consul Neowatt’s network of sales and service centres to expand its power electronics systems business in India, targeting mainly the manufacturing industry and the data centre market.
Fuji Electric will also use the manufacturing infrastructure and product development capabilities of Consul Neowatt to develop price-competitive products specifically designed for demanding site and power conditions.
Following the acquisition, the Japanese company will rename the target as Fuji Consul Neowatt Power Solutions Pvt. Ltd.
Fuji Electric didn’t disclose financial details of the transaction. However, The Economic Times and Mint newspapers reported, citing a person who wasn’t authorised to speak to the media, that the deal value was around Rs 720 crore ($103.5 million).
Peepul Capital had acquired a majority stake in Consul Consolidated Pvt. Ltd in 2012 for an initial investment of $25 million. In 2014, Consul was merged with Pune-based Neowatt Energy to create Consul Neowatt.
Consul Neowatt manufactures equipment from single- and three-phase Uninterruptible Power Systems (UPS) to static transfer switches and industrial systems and solar inverters. According to its website, the company has delivered over 1,000 megawatts of power backup and conditioning products and conducted over 250,000 installations across Asia, West Asia and Africa.
Fuji Electric has made several moves globally in recent years, including acquiring a 70% stake in German fuel cell company N2telligence in 2016. It also bought Canadian rail manufacturer SEMEC Electromecanique Inc. in the same year, as well as the turbine and power plant service business of the United States-based RTS Holdings Inc.
The PE firm was founded in 2000 and has around $700 million in assets under management, according to its website. The firm has so far invested through three funds; it had raised $110 million in its first fund, $214 million in the second fund in 2005 and a tad less than $320 million in its third outing in 2010.
The sector-agnostic PE firm is in the midst of raising a fourth fund. Last year, VCCircle reported that Peepul Capital had invested more in Innovative Foods Ltd, which markets frozen food products under the Sumeru brand.