Power equipment maker Thermax Ltd said today that it is acquiring Denmark-based Danstoker A/S in a $42 million or Euro 29.5 million deal. The deal, which also includes Danstoker's German subsidiary Omnical Kessel. Danstoker is a European boiler manufacturer and will help Thermax tap the growing renewable energy market in Europe, which aims to generate 20% of its overall energy from renewables.
Thermax manufactures biomass based boilers and waste heat recovery systems for a number of industries. The company has manufacturing capacities in Denmark and Germany, where it acquired Omnical in 2003. Danstoker is a profitable firm with annual sales of $56 million or
Euro 40 million. The company has 1,200 installations in Europe with a strong presence in markets in Nordic region, Germany, France, Russia and UK.
Danstoker's subsidiary Omnical specializes in boilers using oil and gas as well as biomass, and also has waste heat recovery products. It has supplier relationships with European and Japanese gas turbine manufacturers for their requirements of waster heat recovery systems. Danstoker group's 50% revenues come from the renewable energy segment.
Thermax plans to tap global biomass market, which is expected to double in the next 20 years. Boiler makers are focusing on energy efficiency and multiple fuel usage to ensure energy security. The deal will add 237 employees to Rs 3,300 crore Thermax.
The share price of Thermax was trading at Rs 875.65 at 2:25 pm today, down by 1.65%.