Industrials and Chemicals Sector Comment – September 2014

Date

India is home to significant players in the Industrials and Chemicals markets who are actively pursuing M&A opportunities in Europe. Gaining direct access to customers provides such companies with immediate routes to market and acquiring new technologies or product capabilities puts them in a stronger position in India and on a global scale.

The Amtek Group Ltd, headquartered in India, has been particularly active over the past few years. It recently announced the acquisition of the German Kaiser Group, a supplier of gearboxes, engines and brakes. In March, Amtek acquired the Germany-based Kuepper Group, a casting and machining sub-assembly group with five facilities spread across Germany and Hungary. In 2013, the group acquired Germany-based Neumayer Tekfor with nine manufacturing facilities spread across Germany, Brazil, Italy, Mexico and the US.

In 2012, Crompton Greaves Ltd acquired the Spanish company ZIV Aplicaciones y Tecnologia SL, a company engaged in the design, engineering, manufacturing and support of intelligent electrical devices and automation systems for utilities and industries. This transaction followed the 2011 acquisition of the Scandinavian company Emotron AB, a power electronics and engineering company engaged in the manufacture of variable speed drives, soft starts, shaft power monitors and customised products.

India’s new Prime Minister Narendra Modi has vowed to revive economic growth to 7-8% within the next three years which will no doubt bring about additional M&A opportunities for ambitious Indian companies.

Clearwater International has worked on a number of transactions with Indian buyers including advising Tritech Group Ltd, a manufacturer of complex investment castings, on its sale to the Neterwala Group of Companies, and advising Yule Catto on the sale of its subsidiary PFW Aroma Chemicals BV to an Indian entrepreneur.