KEC board approves acquisition of 2 German firms

Electrical equipment manufacturer Kirloskar Electric Company today said its board has approved the acquisition of two Germany-based manufacturing companies for an undisclosed amount.     

The board of directors has approved acquiring of about 95 per cent stake in Lloyd Dynamowerke Gmbh&Co (LDW) and 100 per cent holding in Lloyd Beteiligungs Gmbh from CMP Fonds I Gmbh, Kirloskar Electric said in a filing to the Bombay Stock Exchange.     

Under the arrangement Kirloskar Electric Company (KEC) would be able to sell LDW's product under AEG brand name in the ASEAN countries.     

"Kirloskar Electric would distribute LDW products in India and South East Asia and would leverage on LDW's presence in Europe to sell its products in that market," KEC Joint MD P S Malik said.     
The acquisition would be facilitated through KEC's Netherlands- based wholly-owned subsidiary Kirsons BV, the filing added.     

"The acquisition would give Kirloskar Electric complementary skills, a unique footprint in Europe and an important customer base built over the last few decades," KEC Chairman and Managing Director Vijay Kirloskar said.     

LDW, which is engaged in the business of manufacturing electrical rotating machines, had clocked $78 million revenues in FY07.     

Shares of KEC were trading at Rs 128, up 6.98 per cent on the BSE.