COIMBATORE, May 25: City-based Salzer Electronics has acquired 72.32 per cent stake in Kaycee Industries Limited of CMS group, a pioneer in industrial switches for more than 75 years.
The acquisition is in line with companys focus to strengthen Salzers position in the industrial switchgear market by increasing its product offering and expand its footprint in railway business, manufacturing set-up in western
India and access to all-India dealer network, a company press release said Saturday.
Acquisition was to aid Salzer to expand its presence into the electrical equipment sector, the release said.
In the last few years, homegrown CMS group, being leading player in IT/ ITES, traffic signaling, cash management, e-Governance and surveillance has been churning its portfolio of businesses, it said.
Salzer has entered into a definitive agreement with the CMS group to acquire its stake of 72.32 per cent in Kaycee Industries in an all-cash deal, and make an additional offer to purchase 26 per cent from the public for a total equity value of Rs 22 crores, the release said.
Salzer Electronics has adequate financial flexibility to fund this transaction through a mix of internal accruals and debt, it said.
The acquisition is subject to inter alia receipt of necessary regulatory approvals and satisfaction of other conditions as specified in the offer documents, it said.
Commenting on the development, managing director of Salzer Electronics Ltd R Doraisamy said: I am happy to share that we have entered into a definitive agreement with promoters of Kaycee Industries to acquire 72.32 per cent stake in the company. This acquisition is in line with our strategy of strengthening and growing our suite of product offerings…” (PTI)
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