Kirloskar Oil Engines (KOEL) has executed a definitive agreement, on June 21, 2017, to acquire 76% stake in La-Gajjar Machineries (LGM) at a valuation of 7.89 times EBITDA for the year ending March 2018. The balance holding will be acquired by KOEL over a 5 year period. The current shareholders and the management team of LGM would continue to be actively involved in the business.
LGM provides KOEL a strong and established footprint into the electric pump market through its ‘Varuna’ and ‘Raindrop’ brand of submersible and mono-block pumps and further consolidates on KOEL’s strong position in the diesel and electric pump segment.
Kirloskar Oil Engines manufactures diesel engines in the range of 2 Kva to 6 MW. The engines are preferred by various services sectors like banks, telecommunication establishments, commercial use buildings, hotels and restaurants.
