Pitti Engineering (PEL) has signed an agreement with Bagadia Chaitra Industries (BCIPL) and its shareholders to acquire 100% of the equity share capital of BCIPL at an Enterprise Valuation of Rs 124.92 crore. The cost of acquisition would be arrived at, by adjusting the said Enterprise Value for the Net Debt and Working Capital changes on the Closing Date and subject to other adjustments that are mutually agreed between the Parties. As part of the overall consideration, PEL will infuse upto Rs 40 crore as funding into BCIPL, on Closing Date, to repay the existing debt in BCIPL.
This acquisition would help PEL broaden its presence in South India, will add to the overall asset base and production capacity, provide entry into new end use sectors and add new customers. Overtime, with new customer acquisition and synergies coming in sales and marketing, PEL would be able to sell their existing product portfolio as well to these new customers, thereby enabling greater market penetration. Additionally, the acquisition aligns with PEL’s inorganic growth strategy and will provide enhanced operational strength.
Pitti Engineering is India's largest and most reputed manufacturer of Electrical Steel Laminations, Motor Cores, Sub-Assemblies, Die-Cast Rotors and Press Tools.
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