Belgian family-owned industrial conglomerate BMT Group has acquired a controlling stake in Involute Technologies Pvt Ltd, a Pune-based automobile parts manufacturing company, for Rs 170 crore ($25.5 million), as per a statement.
The deal that was closed last month, involves acquisition of 60 per cent stake by affiliates of IGW International NV, a part of BMT group, in Involute Technologies from its promoter Anil Somalwar and group firms Manasi Auto Parts LLP and Auto Components Pvt Ltd.
The acquisition will help BMT group have a platform in India and Asia, with an opportunity to participate in growth opportunities from demand for gears for Indian railways. This would also expand the product profile for Involute.
Incorporated in 1984 as a turned components manufacturer, Involute has become a player in transmission gears, shafts, assemblies and sub-assemblies. The company has customers in the US, the UK, Japan, Europe and Southeast Asian countries.
It earns 65 per cent of its revenue through direct and deemed exports.
The firm has four manufacturing plants currently in operation and the fifth plant is under commission, as per its website.
IGW is part of the gears division of BMT Group, which is also into glass manufacturing. Within the gears division, BMT has a separate unit for aerospace related products.
Founded in 1949 by Alfons Watteeuw and now owned by the Belgian BMT group, IGW provides gears, components and solutions to a range of industries, while focusing on low and medium lot sizes for railway, wind, marine, agriculture, compressor, aerospace, lithography, etc.
Separate emails sent to IGW and Involute on the triggers for the deal and what it means for the day-to-day management of the firm did not immediately elicit a response.
Shardul Amarchand Mangaldas & Co advised the BMT Group on this deal while Involute and its promoters were represented by LegaLogic Consulting.