Symphony rises after acquiring Australia's Climate Technologies

Symphony rose 2.76% to Rs 1478.10 at 10:33 IST on BSE after the company said it signed an agreement to purchase effectively 95% equity stake in Australia's Climate Technologies.

The announcement was made after market hours on Friday, 22 June 2018.

Meanwhile, the S&P BSE Sensex was down 34.08 points, or 0.10% to 35,655.52.

On the BSE, 2,836 shares were traded in the counter so far compared with average daily volumes of 4,100 shares in the past two weeks. The stock had hit a high of Rs 1,495 and a low of Rs 1,440 so far during the day. The stock hit a record high of Rs 2,212.75 on 11 January 2018. The stock hit a 52-week low of Rs 1,153.75 on 11 August 2017.

Symphony announced that it has signed an agreement to effectively purchase 95% equity stake in Climate Technologies, Australia's leading manufacturer of cooling and heating appliances. The acquisition will be executed at a valuation range of 40-44 million Australian dollars (Rs 201 - 221 crore) depending on the achievement of FY18F EBITDA (June ended). Further, the valuation is subject to change based on customary closing conditions. The company plans to finance the acquisition through a judicious mix of debt and internal cash accruals. Headquartered in Adelaide, South Australia, Climate Technologies manufactures and sells evaporative air coolers, ducted gas heaters, and other cooling products in Australia and USA.

CT's manufacturing facility is located in Salisbury, South Australia with an assembly operation in Las Vegas, Nevada. Upon closing, the acquisition is expected to be immediately accretive to Symphony's earnings and return on capital, with potential for significant synergies.

Acquisition is expected to be completed within a period of 30 business days, subject to fulfilment of customary closing conditions by relevant parties. No government or regulatory approvals are required for the acquisition. The acquisition does not fall within related party transaction and none of Symphony's promoter, promoter group, group companies have any interest in Climate Technologies.

Net profit of Symphony declined 8.13% to Rs 41.93 crore on 14.04% decline in net sales to Rs 155.39 crore in Q4 March 2018 over Q4 March 2017.

Symphony provides air cooling solutions across homes, workplaces, industrial plants & factories across the globe.

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