Blackstone to buy Agile, Igarashi Motors

The PE firm could spend another Rs 51 crore to acquire an additional 26% stake through an open offer

Blackstone Capital Partners, one of the largest private equity firms, is acquiring a majority stake in Chennai-based auto part maker Agile Electric Works, and its listed arm, Igarashi Motors India Ltd (IMIL).

The deal is estimated at around $100 million (Rs 660 crore), said a Reuters report though other reports pegged the deal value at $110 million. Company officials were not available for comment. Reuters stated a share subscription agreement and two share purchase agreements were signed on Wednesday.

Igarashi Motors told the BSE exchange that its board had given an approval for an Optionally Convertible Debentures subscription agreement. In a two-tiered transaction, the PE fund will take 98 per cent in the parent, giving it a 58 per cent stake in IMIL.The transaction will also trigger an open offer for an additional 26 per cent stake in the company. The offer would be for acquiring 7.9 million shares at Rs 65 each. This would mean an offer size of about Rs 51 crore.

Agile Electric is the largest manufacturer of DC motors in the country and its customers include leading companies such as Delphi, Bosch, Ford and Continental. The company has eight manufacturing facilities in Chennai, seven of which are located within Special Economic Zones.

Since 2007, Blackstone has pumped in $2.5 billion in 20 companies. This would be third time the PE firm acquired a controlling stake in one. In 2007, it bought a 68 per cent stake in Gokaldas Exports for $158.7 million and an 80 per cent stake in Intelenet Global Services for $260 mn, which it has exited. It also owns all the stake in DLF Ackruti Info Parks Pune Ltd, bought for $149.2 mn.