CHENNAI: Tube Investments of India, part of Murugappa group and manufacturer of bicycles, precision steel tubes, cold rolled steel strips, cold roll formed sections and industrial and automotive chains has acquired a controlling stake in Sedis Group, France in order to strengthen the industrial chains business.
TII has directly picked up 77% stake in the holding company, Financiere C10 from financial investors (75%) and other shareholders. The management shareholders of Sedis will retain the balance stake and be associated with it for three years.
Sedis is a leading manufacturer of industrial and engineering class chains in France and possesses a product range covering the requirements of a whole range of industries including the high growth infrastructure sector.
In a release on Friday, TII said the client list of Sedis includes Charles De Gaulle airport, Metronet, Cairo Metro, Otis, RATP (Paris Metro), Calcia, Tubelines, British Environment Agency, Birse Civils, etc.
The turnover of Sedis Group was Euro 37 Million for the year 2008 and the profit after tax was euro 1.35 million. During the first nine months of calendar year 2009 the revenue was Euro 21 Million and the profit after tax Euro 0.55 Million.
Sedis has a presence in almost 100 countries through its vast distribution and sales network. It has two plants in France and a marketing company in the United Kingdom.
TII Chairman MM Murugappan, Chairman TII said, “the acquisition symbolises our dynamism in today’s global business arena. With Sedis we aspire to create a strong European base which, together with our skills, will put us on the path to becoming a global industrial chains manufacturer.”
TII MD, L Ramkumar said, “The acquisition will help us enter new technologies and strengthen our existing technological expertise and emerge as a leading global player in the industrial chains business.”
Sedis CEO, Armand said it has been associated with the Murugappa Group for the last 9 years. Now, it will combine the technical skills, market reach and engineering excellence to grow the chains business of both the companies. Kotak Investment Banking, Mumbai was the financial advisor to TII in the transaction.