CG Power and Industrial Solutions Limited, formerly Crompton Greaves Limited, announced the sale of its B2B automation business to Alfanar for an enterprise value of 120 million Euros (about Rs 845 crore).
The transfer of the business is effective from March 6, 2017 (CET). The sale of the Automation business includes ZIV Aplicaciones y Tecnologia, S.L. (Spain), its subsidiaries along with the related Automation businesses in UK, Ireland, France and India (ZIV). Upon completion of the Sale, ZIV Automation India Ltd, the wholly owned subsidiary owning the India Automation Business will cease to be a subsidiary of the Company and will be a wholly owned subsidiary of ZIV Aplicaciones y Tecnologia, S.L, Spain.
Headquartered in Riyadh, Saudi Arabia, with over 22,000 employees and US$ 2.5 billion turnover, Alfanar is a major player in the electrical manufacturing business, including the manufacturing of electrical construction products as well as related engineering services. Alfanar operates in construction and manufacturing businesses, design and development centers with a number of facilities in the Middle East, Asia and Europe.
Commenting on the deal, Avantha Group Company CG’s CEO and Managing Director, K. N. Neelkant said, “It was our attempt to find the right partner for ZIV and Alfanar is well positioned to support ZIV in its next phase of growth and technological development. For CG, this significant strategic action is intended to meet our objective of debt reduction, strengthening our balance sheet and building a financially stronger Company. The divestment is also a step towards our strategy to focus on our core products and markets that provide a significant growth opportunity with improved profitability.”