Kalpataru inks pact to buy 85% stake in Swedish company

New Delhi: Engineering firm KPTL Monday said its arm Kalpataru Power Transmission Sweden AB has signed an agreement to acquire 85 per cent equity stake in Linjemontage i Grastorp AB for $24 million.

The acquisition of Linjemontage is in-line with the KPTL's stated objective of growth and greater geographical presence in stable and growing markets with focus on core power transmission segment, a Kalpataru Power Transmission statement said.

According to the statement, the transaction is expected to close in the first quarter of 2019-20.

The Linjemontage i Grastorp AB was founded in 1993. It specialises in power supply solutions and services for electricity networks up to voltage range of 400 kv.

It has a profitable track record. The company has presence in Sweden and Norway with an order book of around SEK (Swedish Krona) 710 million (around $77 million) as on date, the company said.

Commenting on the acquisition, Sanjay Dalmia, Executive Director, KPTL said in the statement, "This acquisition has been carried out on grounds of strategic fit both to capture local market opportunity and to help us in expanding our presence in Nordic countries where we have no former presence. This strategic acquisition will also help the KPTL with greater access to technology and EPC (engineering construction and procurement) capability to take turnkey projects in Nordic countries and Europe".

KPTL is one of the largest and fastest growing specialised EPC companies in India engaged in various segment including power transmission & distribution, oil & gas pipeline and railways.