Symphony Ltd, an Ahmedabad-based air cooler maker, has signed an agreement to acquire China-based Munters Keruilai Air Treatment Equipment Guangdong Co Ltd (MKE) for RMB 1.5 million ($234,000 or Rs 1.5 crore), according to a stock market disclosure.
MKE was formed as a JV between Sweden's Munters AB and Dongguan Keda Electrical & Mechanical Equipments Co in 2011. The local partner's stake was later acquired by Munters.
The company produces energy-saving evaporative air coolers under brand name Keruilai and expects to end 2015 with revenues of around Rs 56 crore. The firm employs around 140 people. MKE is a debt free company and has a leased manufacturing unit in Dongguan in China.
Munters is a part of Nordic Capital and has been looking to sell MKE as part of strategic shift out of heating products business. It had created MKE as a complementary business to this heating segment.
For Symphony, this is the second overseas acquisition after it acquired Mexico-based IMPCO, a company founded by Adam Goettl, the inventor of the air-cooler. IMPCO now makes metal-cased coolers for the industry.
The firm had attempted a disastrous diversification in various consumer durable products in the 90s, a move that threatened to sink the company. It retuned its focus on its core air cooler product a decade ago and now boasts of well over $1 billion in market valuation.
Symphony's scrip last traded at Rs 2057.50 each, up 11.48 per cent on BSE in a flat Mumbai market on Thursday.
