Skip to content
  • About Us
  • Advertise
  • Contact Us
  • DMCA
  • Privacy Policy
  • Follow on Google News
The Medium News

The Medium News

  • Home
  • India
    • National
    • Regional News
  • Business
  • Education
  • LifeStyle
    • Fashion & Beauty
    • Food
    • Health & Fitness
    • Travel
  • Tech
    • Apps News
    • Gadgets
  • Automobiles
  • Sports
  • Entertainment
  • More
    • Agriculture
    • astrology
    • Environment
    • Finance/Money
    • Religion
    • Science
    • Social Work
    • Wow Personality
    • Press Release
  • Toggle search form

GMM Pfaudler to acquire majority stake inthe global business of Pfaudler Group

Posted on August 27, 2020 By The Medium News No Comments on GMM Pfaudler to acquire majority stake inthe global business of Pfaudler Group

 

· Transformational acquisition will make GMM Pfaudler themarket leader in corrosion-resistance technologies, systems and services

·   Revenue of the combined entity estimated to be around Rs. 20 bn (USD 266 mn*)

·  Patel family (promoters of GMM Pfaudler) to invest alongside GMM Pfaudler

· This acquisition is expected to be earnings accretive immediately to the shareholders of GMM Pfaudler

Mumbai: GMM Pfaudler Limited (“GMM” or “Company”) today announced the signing of definitive agreements to acquire a majority stake in the global business of its parent, the Pfaudler Group (“Pfaudler”) from the private equity firm Deutsche Beteiligungs AG Fund VI (“DBAG”). As per the agreements, GMM(directly and through its subsidiary Mavag AG) and the Patel family will acquire, a 54% and 26% equity stake respectively in the Pfaudler Group. DBAG will continue to retain the balance 20% stake. The consideration for the 54% stake acquired by GMM, which is expected to be around USD 27.4 million, will be funded by the Company through a mix of internal accruals and debt.

Pursuant to the acquisition, GMMshall become the ultimate holding company withthe entire business of Pfaudler being consolidated into the Company. The Company will have a consolidated revenue of Rs. 20 bn. and EBITDA of approximately Rs. 2.5 bn.

GMM will become the world leader in corrosion-resistance technologies, systems and services with 12 manufacturing facilities across 8 countries and 4 continents and employing around 1,500 people.

Management Commentary

Commenting on the transaction:

Tarak Patel, Managing Director,GMM said, “Over the last 5 years, we have shown an unparalleled track record of growth at GMM and it is now time to take our Company to the next level through this transformational acquisition. Being an integral part of Pfaudlerfor more than 3 decades, not only do we understand the business very well but have also managed to build a collaborative relationship with the different Pfaudler units around the world.  This transaction is unique from the stand point that it combines the strengths of three very different partners – Promoter family, Professional Management and Private Equity which we believe will help extract synergies and create value for all stakeholders. On a personal level and as the third generation of a family business that began in 1963 it is a moment of great pride to see GMM enter the global stage.”

Thomas Kehl, CEO, Pfaudler said, “Over the last few years Pfaudler has spent significant capex in modernizing it’s manufacturing facilities across the globe. This transaction will bring synergies across multiple levels, the combined business will now be in a position to leverage GMM’s highly successful lean-production model and low cost to improve both revenue and profitability.  In addition, our order book remains strong on the back of robust demand driven by the Chemical and Pharmaceutical industries. Together with the GMM management and DBAG, who we have worked closely with over the last 5 years we expect to complete a seamless integration and hit the ground running.”

Tom Alzin, Managing Director, DBAGsaid, “The rationale behind our investment in Pfaudler in 2014 was to back a high-quality supplier of corrosion-resistant equipment in a global niche market. The Group’s progress over the past 5 years along with the phenomenal performance from GMM validates our investment decision. As a former Board Member of GMM, I can say that we have built a strong relationship with the Patel family and remain committed to support the business through expansion of the product portfolio by add-on acquisitions. Given the synergies of the combined business and the long association between Pfaudler and GMM, we believe that the combined business will be EPS accretive from the start and we will continue to remain invested in the Company.”

Subject to the satisfaction of certain closing conditions and regulatory approvals, the transaction is expected to close in November 2020.

Alvarez & Marsaland Trilegalacted as the exclusive financial and legal advisors respectively to GMM Pfaudler.

The company will conduct a call at 4.00 PM IST on August 24, 2020 where the senior management will discuss this transaction and answer questions from participants. To participate in this conference call, please dial the numbers provided below ten minutes ahead of the scheduled start time. The dial-in number for this call is +91 22 6280 1107/+91 22 7115 8008.

Business, Tech

Post navigation

Previous Post: Vikas EcoTech Ltd. to Exploit Opportunities in Pharma, API and Chemical Industry; to invest Rs.75 Cr
Next Post: Profoundly sought-after link between Gravity and Electrical force revealed by an Indian Researcher

More Related Articles

Pahia: A Mohali-Based Startup Empowering Street Vendors with Technology Business
Plumbex India 2025: Strategic Collaborations and Whitepaper Launch to Revolutionize Urban Water Management Business
Feelaxo: The Platform That’s Transforming How India Books Salon and Spa Services Business
The Social Stays: From Shark Tank Spotlight to India’s Most Vibrant Hostel Brand Business
Dev Goel: Human Attention is Finite. Assettlor Designs for It Business
Project  Details: Falcon view penthouse in ChandigarhProject  Details: Falcon view penthouse in Chandigarh Business

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories

  • Agriculture
  • Apps News
  • astrology
  • Automobiles
  • Business
  • Education
  • Entertainment
  • Environment
  • Fashion & Beauty
  • Finance/Money
  • Food
  • Gadgets
  • Health & Fitness
  • LifeStyle
  • National
  • Photography
  • Politics
  • Press Release
  • Regional News
  • Religion
  • Science
  • Social Work
  • Sports
  • Tech
  • Travel
  • Uncategorized
  • World
  • Wow Personality

Recent Posts

  • Aveya IVF & Fertility Center: Pioneering Accessible Parenthood with Fertility Solutions
  • Krishiyug Inovatives Pvt. Ltd.: Where Ancient Farming Wisdom Meets Rural Empowerment
  • Rice Over Bread: How Lenexis Foodworks Captured India’s Chinese Food Market
  • Jahangir Tutorials Voted Best CS Classes in English for CSEET, CS Executive, and CS Professional
  • Pahia: A Mohali-Based Startup Empowering Street Vendors with Technology

Ace Entrepreneur actor artificial intelligence author Bangalore Bengaluru Blockchain technology business Content Creator COVID-19 Cryptocurrency Delhi digital marketing Dr. Sandeep Marwah Dubai education entrepreneur Fairplay Gujarat Gurugram health Hyderabad IIT Delhi Indian Institute of Technology influencer Influencerquipo Kingston Technology K Raheja Corp Homes Lotus Herbals memory products and technology solutions Mumbai Music Industry Nidarshana Gowani Noida photography producer Pune real estate Sakra World Hospital Shan Se Entertainment Shantanu Bhamare Social Activist Social media Surat TTK Prestige

Copyright © 2025 The Medium News.

Powered by PressBook Blog WordPress theme