The company has not revealed the cost of acquisition but has informed that details including consideration for acquisition would be announced after the closing of the deal by July 15.
Central air-conditioning and commercial refrigeration major, Blue Star, is planning to acquire DS Gupta Construction Pvt Ltd, the largest independent plumbing and fire-fighting contracting company in India as a going concern, the company said today.
The company has not revealed the cost of acquisition but has informed that details including consideration for acquisition would be announced after the closing of the deal by July 15.
A press note by the company said the proposed acquisition would "fortify an important pillar in the company's integrated mechanical, electrical, plumbing & fire fighting (MEP) contracting offerings",.
The promoters of DS Gupta Construction will continue to manage the business for the foreseeable future even after the acquisition, it added.
The company said customers prefer an integrated MEP contractor rather than several independent vendors. It acquired Naseer Electricals in early 2008 to add electrical contracting capabilities and began offering integrated MEP services across the country.
The company said it also thought it prudent to acquire these capabilities inorganically through a strategic acquisition to leverage the growth opportunities available.
Mumbai-based D S Gupta Construction, with a turnover of Rs 130-crore in FY 10, has executed contracts for hotels, hospitals, IT/ITES parks and residential complexes.
With this acquisition, not only will Blue Star be in a position to aggressively pursue integrated MEP business, but will also bid for stand-alone plumbing and fire-fighting contracting projects by cross-selling its services to the existing air conditioning and electrical contracting customers, the company statement said.
In several stand-alone air conditioning jobs that Blue Star executed in the past, D S Gupta Construction has been the plumbing and fire fighting contractor, it said.
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