Japan's Daifuku buys 100% stake in Vega Automation for undisclosed sum

Vega's MD and promoter will continue to head the company as part of the deal under which a part of the purchase price is based on the performance of the business post acquisition

Japanese material handling equipment supplier Daifuku Co., Limited has acquired Hyderabad-based warehouse automation company Vega Conveyors and Automation for an undisclosed sum. 

Vega will become a 100 percent subsidiary of Daifuku post acquisition even though its managing director Srinivas Garimella, who is the promoter, will continue to head the company as part of the deal that includes an earn-out package. Earn-out is a pricing structure where a part of the purchase price is based on the performance of the business following the acquisition, which comes in the backdrop of a booming warehousing infrastructure development in India.

Vega Conveyors, which operates a factory