L&T to sell arm to Berkshire Hathaway-owned IMC International
Photo Credit: Reuters

Infrastructure and engineering major Larsen & Toubro will sell its entire stake in unlisted wholly-owned subsidiary L&T Cutting Tools Ltd to IMC International Metalworking Companies BV for Rs 174 crore (around $27 million).

Billionaire investor Warren Buffett-led Berkshire Hathaway Inc owns IMC International Metalworking Companies.

The deal is expected to be closed within three months, L&T said in a stock exchange disclosure.

L&T Cutting Tools offers industrial cutting tools of Israel-based ISCAR Ltd to companies in sectors such as automotive, engineering, aerospace and defence, according to its website.

In financial year 2016-17, L&T Cutting Tools’ total revenue stood at Rs 169.46 crore.

IMC provides engineering and manufacturing solutions to clients across the world. The group comprises 13 firms which together supply a range of precision carbide metalworking tools.

The sale is part of L&T’s strategy to exit non-core businesses. In 2016, L&T sold its general insurance business to HDFC Ergo for $82 million. According to a previous report by The Economic Times, the engineering major was in talks with Swedish-Swiss multinational ABB to sell its electrical and automation division.

L&T has operations in engineering, construction, manufacturing, technology and financial services.

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