HOERBIGER Group, Zug, Switzerland, has acquired the compressor business of Gala Precision Technology Pvt Ltd., a Mumbai based manufacturer of valves and systems for reciprocating compressors in hermetic and semi-hermetic applications.
In 2005, India Value Fund invested Rs 50 crore in the auto component maker to set up a manufacturing plant in China and part-fund its acquisitions. Further investments, if any, by the private equity major in the auto component manufacturer is not known.
HOERBIGER will continue to operate the compressor business and the production site of Gala in Thane, India, as an independent entity. The Switzerland based company said that it will be able to sustainably expand its global market position due to Gala’s strong presence in Asia.
Commenting on the transaction, Thomas Englmann, Head of the Serial Compressors Business Area for HOERBIGER, said, “In order to be able to offer the best performance and the best service to our customers, it is important to produce locally, especially in Asia. In this respect, strategically the acquisition of Gala is an extremely important addition to our existing positioning in the market. It will allow us in the short term to support our globally operating customers, as well as our locally and regionally positioned business partners, even better than before so they can achieve their operational and strategic objectives.”
Gala's clients include Sundram Fasteners, Tecumseh, Delphi TVS and Panasonic.
Avendus Capital was the exclusive financial advisor to the shareholders of Gala Precision Technology for the transaction.