Tata Capital joins consortium buying Blackstone's Agile stake

The company's listed subsidiary, Igarashi Motors India (IMI), announced in January that Blackstone had agreed to sell Agile to Japan-based IEW and Mape, a boutique investment bank, for $106.4 million. Tata Capital's involvement was not disclosed at that point.

HBL Power Systems bought a majority stake in Agile in 2010, and Agile in turn acquired 62.3% of IMI for $10.5 million. In 2013, Blackstone bought its 97.9% holding in Agile from HBL and other shareholders for $55.5 million, triggering an open offer for 26% of IMI in conjunction with Padmanaban Mukund, IMI's managing director. As of March 2015, Agile owned 42.1% of IMI while Mukund had 32.8%.

The transfer in control of Agile has triggered the open offer provision for 26% of IMI once again. The cost is expected to be up to $41 million. In addition to Agile's now 41.9% stake in IMI, IEW holds 11.3% directly, according to a regulatory filing.

Agile produces low-cost DC motors for the automotive industry, and claims to be one of the largest suppliers to the sector, with exports to the US, Europe, and Asia, accounting for 90% of its sales. The company has eight manufacturing sites in Chennai, seven of which are located in special economic zones.

Revenue came to INR3.85 billion ($60 million) for the 12 months ended March 2015, up from INR3.61 billion the previous year. In 2013, the year Blackstone invested, revenue came to INR2.91 billion. Net profit rose from INR213 million to INR461 million and then INR489 million over the same three-year period.

"The company, under Mukund's leadership, has delivered strong growth during our investment horizon. Investment by a global motor manufacturer, Igarashi, is the logical step in taking the company to the next level," Amit Dixit, senior managing director and co-head of India private equity at Blackstone, said in a statement.

Akhil Awasthi, managing partner with Tata Capital Growth Fund, added that Agile, with its proven engineering expertise and innovation, is well poised to capitalize on the growing trend of manufacturing in India.

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• Topics
• Buyouts
• Exits
• South Asia
• Industrials
• Exit
• Trade sale
• The Blackstone Group
• Tata Capital
• manufacturing