Kolkata-based Paharpur Cooling Towers Ltd has agreed to acquire US company SPX Cooling Technologies' dry cooling business globally for Rs 320 crore (about $48 million), according to a statement.
The business also includes SPX's ownership interest in its joint venture with Shanghai Electric. The transaction doesn’t include SPX's subsidiary - DBT Technologies (Pty) Ltd - in South Africa.
The deal amount is subject to adjustments for working capital at closing, the statement said. The transaction is expected to be finalised during the first half of 2016 and is subject to regulatory approvals. Other terms of the deal were not disclosed.
SPX said in a statement that the sale proceeds will provide the company with a greater ability to deploy capital in accordance with its stated capital allocation policy. It didn’t elaborate.
SPX Cooling is part of New York Stock Exchange-listed SPX Corp, which makes and sells power transformers, boilers and communications systems. It has several companies that control the $100-million dry cooling business (excluding the turnover of the joint venture with Shanghai Electric) of the group across the world.
SPX CEO Gene Lowe said that the sale will help the dry cooling business benefit from Paharpur’s long-term focus on dry cooling solutions.
SPX’s dry cooling business is headquartered in Brussels and has facilities in China and the US. The division accounts for about 10 per cent of revenue of SPX’s power segment.
Pahaarpur Cooling Towers has about 45,000 installations supplied through several manufacturing facilities. The company's business interests include cooling towers, air-cooled heat exchangers, air-cooled condensers and flexible packaging.
Lodha Capital Markets acted as the financial advisor to Paharpur Cooling Towers in this deal.
