Hyderabad-based Pitti Engineering Ltd. on Tuesday said it will acquire Bagadia Chaitra Industries Ltd. at an enterprise valuation of Rs 125 crore.
As part of the deal, Piti will infuse up to Rs 40 crore as funding into Bagadia to repay its existing debt, the companies said in a statement.
Karnataka-based Bagadia is a manufacturer of electrical laminations and aluminum die cast rotors for AC/DC motors, alternators, pumps, home appliances, electrical vehicles, etc, and has most of its clients in the southern markets.
Its Tumkur manufacturing facility has an installed capacity of 18,000 tonne per annum.
The acquisition will help Piti broaden its presence in the southern markets, apart from aligning with its inorganic growth strategy, and will provide enhanced operational strength, Akshay Pitti, vice-chairman and managing director of Pitti Engineering, said.
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