Everest Kanto buys US company

Deal estimated to be worth $70 million

MUMBAI: Everest Kanto Cylinders (EKC) on Monday said it is acquiring a US company for about $70 million.

Details like name, valuation, revenues, production capacity etc of the target company were not given.

Company officials weren’t available for comments.

Like EKC, the US company also manufactures compressed natural gas (CNG) and industrial gas cylinders.

EKC could use the funds it raised recently to meet the acquisition cost. In two quick rounds of fund raising in October 2007, the company raised

$35 million through foreign currency convertible bond (FCCB) issue and followed it up with a rupee funding worth $20-25 million.

After its December 2005 initial public offering of Rs 90 crore, EKC first raised Rs 92 crore in November 2006 from a clutch of financial institutions.

On its way to become a leading CNG cylinder manufacturer with global scale, Everest Kanto is in an ambitious expansion mode.

It is building capacities at plants in India, China and Dubai, and is currently seeing a $60 million capex plan.