Pennar Industries buys assets of Wayne-Burt Petro

Forays into hydraulics business

Pennar Industries Limited, a Hyderabad-based company engaged in the production and marketing of specialised and engineered steel solutions, has entered the hydraulics business with the acquisition of assets of Wayne-Burt Petro Chemicals Private Limited (formerly Bailey Hydropower), a hydraulics cylinder manufacturing company in Chennai, for approximately Rs 15 crore.

Merisis Advisors, a merger and acquisition investment banking advisory firm, was the exclusive adviser to the transaction.

“This acquisition is part of our strategy to move up the value chain in whichever businesses that we already are. We will be investing another Rs 15 crore in these assets, including in technology and manufacturing. This will double the plant capacity in the next one year,” Pennar president and chief executive officer, Suhas Baxi, said.

Pennar has acquired the production, engineering, product development programme and the existing customer relations of Wayne Burt, which has two client relationships. These include the $2-billion asset-based conglomerate Wayne-Burt Group.

Wayne-Burt Petro’s production facility in Chennai has the capacity to produce 225,000 cylinders a year.