Chennai (India), [February 12, 2010]: Murugappa Group company, Tube Investments of India (“TII”), a leading manufacturer of bicycles, precision steel tubes, cold rolled steel strips, cold roll formed sections and industrial and automotive chains today acquired a controlling stake in Sedis Group, France through acquisition of 77% of equity of its holding company, Financiere C10. TII acquired this shareholding directly from the financial investors in FC 10 (75%) and a few other shareholders. The management shareholders will continue to hold the remaining shares in FC 10 and be associated with Sedis for a period of 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. The brand “Sedis” has strong brand equity and the client list includes names such as Lafarge, Charles De Gaulle airport, BAA Heathrow, Metronet, Cairo Metro, Kone, Otis, Schindler etc. The turnover of Sedis Group was Euro 37 M for the year 2008 and the profit after tax was Euro 1.35 M. During the first nine months of calendar year 2009 the revenue was at Euro 21 M and the profit after tax was Euro 0.55 M.
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.
Sedis possesses superior technology for manufacture of special and engineering class chains and this acquisition will enable TII to access these technologies and make products that are today being imported into the country.
Sedis is headed by a highly competent professional in Mr. Robert Armand and he is assisted by a very experienced and talented Senior Management team, which have managed the operations efficiently and profitably during the difficult times.
Commenting on this acquisition Mr. M M Murugappan, Chairman TII said, “This acquisition by TII 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.”
Mr. L. Ramkumar, Managing Director of TII said, “The synergies from this acquisition will not only help us enter new technologies and strengthen our existing technological expertise but also help us emerge as a leading global player in the industrial chains business. With this acquisition, we will be able to offer the requisite technical skills and a complete range of products to meet the requirements of our customers both in the Indian & global markets.”
Mr. Armand, the CEO of Sedis said, “We have been associated with the Murugappa Group for last 9 years. Over these years we have seen the relationship grow on the back of very qualitative, transparent and fair dealings. The values of the Murugappa Group and their commitment to growing the business have been the key considerations in fostering this relationship. We are happy we have been able to come together and look forward to work with TII to 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.
About Tube Investments of India
Tube Investments of India consists of TI Cycles of India, Tube Products of India, TI Metal Forming (including Chains). In bicycles, TII is the second largest manufacturer with well-known brands – Hercules, BSA and Philips. TII is the market leader in precision steel tubes and roll-formed car doorframes in India. Also, being the second largest motor cycle chain manufacturer in India, TII is a major supplier to the Indian auto / auto- component industry.
About the Murugappa Group:
Headquartered in Chennai, the USD 3.14 billion Murugappa Group is one of India’s leading business conglomerates. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 29 companies have manufacturing facilities spread across 13 states in India. The organization fosters an environment of professionalism and has a workforce of over 32,000 employees. The Group has forged strong joint venture alliances with leading international companies like DBS Bank, Mitsui Sumitomo, Foskor, Cargill and Groupe Chimique Tunisien and has consolidated its status as one of the fastest growing diversified business houses in India.