The divestment of its OEM & export business of Auto Product division was done to to Pune-based Badve Engineering in an all cash deal.
11 Aug 2016 | 11140 Views | By Autocar Pro News Desk
Domestic tractor manufacturer Escorts has announced the divestment of its OEM & export business of Auto Product division to Badve Engineering, Pune in an all cash deal as a part of the planned strategic reorientation of the business to focus on core verticals in the Agri-Machinery, Construction equipment and Railway ...
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Domestic tractor manufacturer Escorts has announced the divestment of its OEM & export business of Auto Product division to Badve Engineering, Pune in an all cash deal as a part of the planned strategic reorientation of the business to focus on core verticals in the Agri-Machinery, Construction equipment and Railway equipment.
The auto products business comprises an extensive product basket catering to OEMs and replacement market in India and overseas markets for all vehicle categories including motorcycles, scooters, passenger cars, commercial vehicles, and multi-utility vehicles.
According to Dipankar Ghosh, CEO, Escorts Auto Products & Escorts Railways Products, “We believe that the transfer of OEM and Export business to Badve Engineering Ltd will help us to focus on our core areas. We are delighted that Badve Engineering Ltd has stepped in to take the business forward.”
Speaking on the acquisition, Shrikant Badve, managing director, Badve Engineering Ltd., said, “We are delighted to have acquired a business that has a good market standing and the versatility to produce an extensive range of auto components for various applications.”
ICICI Securities acted as transaction advisor for the deal.