Indo Asian Fusegear is selling its switchgear business to French electrical equipment maker Legrand France SA for a total consideration of Rs.600 Cr.
Legrand will acquire the switchgear business for Rs.495 Cr, will pay an addition one-time Rs.35 Cr as non-compete fee to Indo Asian. The non-compete agreement is for 5 years. It will also pay another Rs.35 Cr to acquire brands owned by Indo Asian Marketing, a company promoted by the Indo Asian Fusegear's promoters.
Indo Asian will continue to operate its other existing business in the areas of lighting, wires and cables.
Ambit Corporate Finance acted as the exclusive investment bankers to Indo Asian Fusegear. J Sagar & Associates acted as the legal advisors to Indo Asian, while Amarchand Mangaldas acted as the legal advisors to Legrand.
Transaction Reference: Myiris
Indo Asian manufactures wide range of switchgears products, which includes miniature circuit breakers (MCBs), HRC fuses, residual current circuit breakers (RCCBs), distribution boards and switches. Apart from swithgear, it is also in the business of lighting, wires and cables. It has nine manufacturing units across India.
It is planning to get into advance lighting systems (including LED), and products for energy management and conservation.
Its net profit rose 66.4% to Rs.1.93 Cr on 11.2% decline in net sales to Rs.58.46 Cr in Q4 2010 over Q4 2009.
French Legrand is engaged in designing, manufacturing and distribution of electrical installations and power distribution products and systems.
KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
| 23/07/10 |
Indo Asian Fusegear - Legrand |
M&A |
Legrand France SA |
127.60 |
| Date | Type | Buyer | Target | Size ($mn) | State |
| 07/02/12 |
M&A |
Piramal Healthcare Limited |
Looking For |
- |
Planned |
| 07/02/12 |
Private Equity |
IDFC Private Equity |
Regen Powertech Private Limited |
20.39 |
Announced |
| 03/02/12 |
M&A |
ThyssenKrupp Elevator India Private Limited |
Eros Elevators & Escalators Private Limited |
- |
Completed |
| 31/01/12 |
M&A |
Inox India Limited |
Looking For |
20.00 |
Planned |
Company |
| Name | Promoters | Office | Competitor | Website |
| Eon Electric Limited (Indo Asian Fusegear Limited) |
V P Mahendru & Group |
51, KMS, G T Karnal Road, Murthal, Distt. Sonepat, Haryana-131027. India. |
|
www.indoasian.com |
 |
Ambit Corporate Finance (I Bank) |
