Blackstone to acquire India's Agile Electric Works for $110m
The Blackstone Group has agreed to buy a majority stake in Indian auto parts maker Agile Electric Sub-assembly Limited (AESPL) and its listed subsidiary Igarashi Motors India(IMIL) for $110 million.
According to a filing, the investor will buy a 97.9% stake in AESPL from existing investors and a fresh subscription of securities for INR3.32 billion ($55 million).
This will give Blackstone a 62% stake in IMIL and it will make an open offer for another 26% stake at INR65 a share, a premium of 8.4% to the last traded price of INR59.95 a share. The 7.95 million shares will be bought for INR517 million by the firm and IMIL managing director,Padmanaban Mukund, acting for Blackstone.
Agile Electric is the largest manufacturer and assembler of direct current motors and also started making alternate current motors in 2012. Its business is mostly exports-driven and clients include Delphi Automotive, Inteva Products, Ford and Bosch. The company has eight manufacturing facilities in Chennai.
According to the Economic Times, Agile and its group companies had revenues of INR5.63 billion and profit after tax of INR340 million. Its EBITDA margin of around 17% is among the highest in the industry.
This is Blackstone's fourth buyout deal in India, after its investments in BPO firm Intelenet Global Services and garment manufacturer Gokaldas Exports in 2007 and its 2008 investment in CMS Computers.
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