100% equity stakes in Excel Controlinkage Pvt Ltd to be acquired by Greaves Cotton
One of the top diversified engineering firms in India, Greaves Cotton, stated that it has acquired a 100 percent share through many tranches in Excel Controlinkage Pvt Ltd, one of the top producers of mechanical and electronic motion control systems in India.
According to a press statement from the firm, a binding term sheet for the purchase was signed. The agreement valued Excel Controlinkage at 7.5x of FY23 Normalized EBITDA for the first Tranche, subject to a maximum Enterprise Value of INR 385 crore.
With the most recent purchase, Greaves will be able to expand internationally and increase its export sales, create a complementary product range with shared client groups, and contribute to the expansion of the fuel-agnostic powertrain portfolio.
The most recent project also highlights Greaves’ aim of developing mechanical, mechatronic, and electrical capabilities as it expands its mobility ecosystem.
Commenting on the development, Mr. Nagesh Basavanhalli, Executive Vice Chairman, Greaves Cotton Limited, said “the acquisition is highly profitable and margin accretive at a consolidated level and complements our vision to build new competencies and accelerate the growth of clean-tech, last-mile mobility.
Mr. Ashok Mrig, Founding Partner, Excel said, “We are confident that in partnership with Greaves with its multi-product, multi-location engineering capability is the right partner for Excel to grow its business globally and multiply Excel’s value in the interest of all stakeholders”.
Dr. Arup Basu, Managing Director, Greaves Cotton Limited, said “Excel Controlinkage has a complementary product portfolio serving common industry segments. The combined capabilities will expand GCL’s technical competencies and act as a springboard for profitable growth across geographies on a larger base of engineering products and services”.
