McNally Bharat Engineering Co, the engineering arm of B M Khaitan group company, is acquiring 100% stake in Bangalore-based construction firm Buildmet Ltd through its subsidiary. McNally Bharat Infrastructure, a wholly-owned unit of Kolkata-based McNally Bharat Engineering, is expected to pick up the stake in Buildmet for Rs 37 crore and has signed a memorandum of understanding with the firms' promoters. 

Buildmet specialises in slipform construction technique to build complex civil structures like silos, chimneys, cement plants, hydel projects, thermal power plants, among others.

Buildmet Ltd, which has been in the construction business for 35 years, reported a turnover of Rs 42 crore and profit before tax of Rs 6.67 crore for FY09. McNally would have strong value integration in the area of cement, power and will consolidate its business in this area after the deal, the company said in a statement to the exchanges.

The company has hired PriceWaterhouseCoopers to conduct the due diligence and the deal size may change if there are any 'adverse findings', the statement added.

The share prices of Mcnally Bharat Engineering peaked at Rs 247, up by more than 2.2% in the morning today, before coming down to Rs 239 levels.

Mcnally Bharat Engineering is involved in providing turnkey solutions in areas like power, steel, aluminium, material handling, etc. It reported revenues of Rs 968 crore and a net profit of Rs 34 crore for FY09. Last year, McNally acquired the worldwide coal and minerals processing business and equipment manufacturing facility of KHD Humboldt Wedag, a German engineering company.

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