Elgi acquires French firm

Elgi Equipments Limited (EEL), Coimbatore-based manufacturer of industrial compressors, today announced the acquisition of Belair SA - France, engaged in assembly, sales and service of industrial compressors, piping, fittings and accessories. The acquisition has been valued around €700,000 (around Rs 4.3 crore).

Jairam Varadaraj, managing director, EEL, said that in Europe and other developed markets, we follow a model of ‘multi — local’ acquisition of small to medium companies with strong brand names and supporting them with the ‘Elgi Inside’ strategy of providing key technologies and product extensions. In line with this strategy, we have purchased 100 per cent shares of Belair S A, France.

 

The acquisition was funded through internal accruals, he added.

Belair operates on the compressors to the industrial segment with about 3 per cent of the French market. It is located at Alby Sur Cheran, in the southern part of France, about 100 km South of Lyon.

The sales of Belair are €6.5 million (around Rs 40.3 crore) per annum and it has 34 employees,” Jairam said.