Vallabh Vidyanagar (Gujarat), Oct 28 (IANS) Elecon Engineering Company Thursday announced it has acquired the Benzler-Radicon group of businesses from Britain-based David Brown Gear Systems Group for 21.41 million pounds.
‘This acquisition will strengthen Elecon’s product development and engineering capabilities and widen its customer base in European, North American and Scandanavian countries,’ said Prayasvin Patel, Elecon group chairman.
The ‘Benzlers’ and ‘Radicon’ brands are amongst the most recognized brands in the power transmission business globally.
Two group companies, Elecon Engineering and Powerbuild Ltd, have combined to make the acquisition. While the former has acquired the European, Swedish and North American businesses, PBL has acquired the Asian businesses.
The BR group’s primary sites are in Britain, Sweden and Thailand. It has a strong presence in the US through David Brown Group subsidiary, Cone Drive.
Patel said the acquisition had been financed 20 per cent from internal accruals and the balance from banks.
‘After the acquisition, we expect our export revenue to go up by 10 to 15 per cent,’ he added.