Greaves Cotton has signed a binding term agreement to acquire a 100% stake through multiple tranches in Excel Controlinkage. The deal value Excel Controlinkage at 7.5x of FY23 normalised EBITDA for the first tranche is subject to a maximum enterprise value of INR 385 crore.
According to Nagesh Basavanhalli, Executive Vice Chairman, Greaves Cotton, the latest acquisition will enable the company to build a complementary product portfolio with common customer segments, grow its international footprint and export revenues, and aid in the growth of the fuel-agnostic powertrain portfolio.
He said, “Excel has established itself as one of the leading players in the manufacturing of mechanical and electronic motion control systems with integrated manufacturing capabilities in India. By harnessing our common synergies, we will be positioned to unlock new growth opportunities for Greaves and emerge as a strong catalyst for a self-reliant, full-stack, made in India mobility ecosystem.”
Excel’s range of portfolio includes heavy-duty push-pull cables, mechanical levers & linkages, and electronic throttle levers catering to customer segments like commercial vehicles, construction equipment, agriculture, material handling, marine, and SPVs.
Ashok Mrig, Founding Partner, Excel, said, “We are confident that in partnership with Greaves with its multi-product, multi-location engineering capability is the right partner for Excel to grow its business globally and multiply Excel’s value in the interest of all stakeholders.”
Arup Basu, MD, Greaves Cotton, added, “Excel Controlinkage has a complementary product portfolio serving common industry segments. The combined capabilities will expand GCL’s technical competencies and act as a springboard for profitable growth across geographies on a larger base of engineering products and services.”
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