Escorts divests OEM, auto products business
The Dollar Business Bureau
Escorts Ltd, one of India's major engineering companies, announced on Thursday that it is divesting its OEM and auto products division’s export business to Pune-based Badve Engineering, in an all cash deal. However, the company did not reveal the size of the deal.
The deal is a part of the farm equipment manufacturer’s strategy to reorient the business in order to focus on its key verticals in construction equipment, agri-machinery and railway equipment, Escorts said in a release.
“We believe that the transfer of OEM and export business to Badve Engineering will help us focus on our core areas. We are delighted that Badve Engineering has stepped in to take the business forward,” said Dipankar Ghosh, CEO, Escorts Auto Products & Escorts Railways Products.
The company’s auto products division includes a wide array of products that caters to the market for OEMs and replacement in India as well as overseas for all the categories of vehicles comprising scooters, motorcycles, passenger cars, multi-utility vehicles, and commercial vehicles.
Commenting on the deal, Shrikant Badve, Managing Director, Badve Engineering, said, “We are happy that we have bought a business that has a good standing in the market and the versatility to manufacture a comprehensive range of automobile components for varied applications.”
ICICI Securities Ltd has acted as the transaction advisor for the acquisition deal.