New Delhi: GMM Pfaudler Limited has announced that it has signed definitive agreements to acquire a majority stake in the global business of its parent, the Pfaudler Group from the private equity firm Deutsche Beteiligungs AG Fund VI.
As per the agreements, GMM (directly and through its subsidiary Mavag AG) and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around USD 27.4 million, will be funded by the Company through a mix of internal accruals and debt.
Pursuant to the acquisition, GMM shall become the ultimate holding company with the entire business of Pfaudler being consolidated into the Company. The Company will have a consolidated revenue of Rs. 20 billion and EBITDA of approximately Rs. 2.5 billion.
“GMM will become the world leader in corrosion-resistance technologies, systems and services with 12 manufacturing facilities across 8 countries and 4 continents and employing around 1,500 people,” a company statement said.
Subject to the satisfaction of certain closing conditions and regulatory approvals, the transaction is expected to close in November 2020. Alvarez & Marsal and Trilegal acted as the exclusive financial and legal advisors respectively to GMM Pfaudler.
Tarak Patel, Managing Director, GMM said, “Over the last 5 years, we have shown an unparalleled track record of growth at GMM and it is now time to take our Company to the next level through this transformational acquisition.”
Thomas Kehl, CEO, Pfaudler said, “Together with the GMM management and DBAG, who we have worked closely with over the last 5 years we expect to complete a seamless integration and hit the ground running.”
