Wipro Infrastructure Engineering (WIN) Acquires Sweden-based Hydrauto Group AB

Wipro Ltd has announced that the Company has signed an agreement to acquire 100% equity of Hydrauto Group AB ("Hydrauto") for a consideration of US$31 million, in an all cash deal.

Wipro Infrastructure Engineering (WIN) is the leading player in precision engineered Hydraulic components and solutions in India, WIN is a Tier 1 supplier to OEMs of Construction and Earth Moving Machinery, Material Handling Equipment, Heavy and Medium Commercial Vehicles amongst other industries, in India and rest of Asia For the year ended March 31, 2006, its revenues were US$57 million.

Hydrauto, based in Sweden, is a leading provider of Hydraulic components and solutions in Europe. Hydrauto is a Tier 1 supplier to OEMs of Material Handling Equipment, Forestry Equipment, Construction and Earth Moving Machinery amongst others. For the year ended December 31, 2005, its revenues were US$ 112 million. It is a profitable entity with positive operating cash-flows.

Hydraulic components are a global US$ 17 billion industry catering to the Construction equipment, Material Handling , Farm and Industrial segments. Growth in India is being driven by the huge investments in the Infrastructure and Industrial segments.

On this occasion, Anurag Behar, Managing Director WIN, said ‘This acquisition gives WIN a unique Asia-Europe footprint, a customer base built over the past few decades and deep complementary engineering skills. Being together will have a multiplier effect on competitiveness."

Olov Larsson, CEO of Hydrauto commented "The Hydrauto team looks forward to becoming a part of the Wipro family. We think that Wipro is a perfect fit, being leaders in Asia and having an established presence in the Asia - Pacific region.

Subject to customary closing conditions and regulatory approvals, the acquisition is expected to be completed by 03 of FY 2006-07.

Source : Equity Bulls

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