Saif Partners-backed Pennar Industries Ltd has acquired the assets of Wayne-Burt Petro Chemicals Pvt Ltd (earlier Bailey Hydropower Pvt Ltd), a hydraulics cylinder manufacturing company in Chennai, for an undisclosed amount, the company said in a filing.
The acquisition includes production, engineering, product development programme and existing customer relations of Wayne-Burt.
"Wayne-Burt products already have a market in North America and this acquisition allows Pennar to have a footprint in the global market. We intend to invest in technology, manufacturing and market development to emerge as one of the top three players in the hydraulic systems business in India," said Suhas Baxi, president & CEO of Pennar.
"Our group has recently forayed into the defense, aerospace, oil & gas and petrochemical industries and made substantial investments in thesesectors. Pennar with its diversified engineering manufacturing capabilities is an ideal business partner to augment our growth plans in defense and aerospace business’ hydraulic cylinder requirements," said TGS Mahesh, founder and CEO of the Wayne-Burt Group.
The production facility in Chennai produces 2,25,000 cylinders per annum.
Merisis Advisors, an M&A focused investment banking advisory firm, were the exclusive advisors to the transaction.
Established in 1988, Pennar Industries manufactures steel products such as cold-rolled steel strips, precision tubes, cold-rolled formed sections, electro-static precipitators, profiles, railway wagons & coach components, press steel components and road safety systems.
The firm is backed by Saif Parners, which picked up 9.01 per cent stake through capital markets. It is also backed by investors like Eight Capital India and Spinnaker Global.
Founded by TGS Mahesh, a first generation technocrat entrepreneur, Wayne-Burt Group is a $2 billion conglomerate with diversified interests in engineering and aerospace, oil and gas, petrochemicals and energy.
(Edited by Joby Puthuparampil Johnson)