ESAB India Acquire Welding Business Of Sandvik Asia
ESAB India Limited has informed that the board of directors of the company at its meeting approved the acquisition of the welding business of Sandvik Asia Private Limited, Pune. The Company is in the business of supplying of welding materials for stainless steel and nickel alloys. Detailed information is annexed below:
|Name of the Target Entity|
M/S Sandvik Asia Private Limited
The acquisition is by way of business transfer agreement of speciality alloys business only.
|Whether the transaction would fall within related party transaction(s) and whether the promoter/promoter group/group companies have any interest in the entity being acquired.||No|
|Industry to which the entity being acquired belongs||Sandvik is a world-class developer and manufacturer of stainless steels and special alloys for demanding environments and has been one of the leading global suppliers of welding materials for stainless steel and nickel alloys for more than 80 years.|
|Objects and effects of acquisition(including but not limited to, disclosure of reasons for acquisition of target entity, if its business is outside the main line of business of the listed entity)|
This acquisition will strengthen our capabilities and competitive position, continuing to make us a partner of choice for welding needs.
4 employees of M/S Sandvik Asia Private Limited be taken on the rolls of the Company on and after completion of the deal.
|Brief details of any governmental orregulatory approvals required for the acquisition||None|
|Indicative time period for completion of the acquisition||31 January 2018|
|Nature of consideration — whether cash or share swap and details of the same||Cash|
|Cost of acquisition or the price at which the shares are acquired||The cost of acquisition is still under finalization between the parties.|
|Percentage of shareholding/control acquired and/ or number of shares acquired||The deal involves a negligible value of current assets and liabilities with no transfer of stocks or receivables. Retirement benefits accrued relating to past period of service is being reimbursed separately.|
|Brief background about the entity acquired in terms of products/line of business acquired, date of incorporation, history of last 3 years turnover, country in which the acquired entity has presence and any other significant information||The Sandvik Materials Technology portfolio is complementary to ESAB's current product lines, expanding the breadth of ESAB's high alloy filler metal offering in stainless steel and nickel. This acquisition will strengthen our capabilities and competitive position, continuing to make us a partner of choice for welding needs.|