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Home arrow Mergers and Acquisitions arrow Kabra Extrusiontechnik Ltd acquires 15% stake in Gloucester Engineering, USA
Kabra Extrusiontechnik Ltd acquires 15% stake in Gloucester Engineering, USA Print E-mail
Written by Vijay   
Thursday, 10 March 2011
Mumbai: Kabra Extrusiontechnik Ltd, one of India's largest plastic extrusion equipment manufacturers, has acquired a 15% stake in US based Gloucester Engineering Co. Kabra's Board of Directors approved the proposal to make a financial commitment of more than USD 4 million (INR Rs. 20 Crores) to acquire the stake.

"KET, through its minority investment in GEC, will gain exposure to customers in the North American, European and other western world markets," said S. V. Kabra, Chairman & Managing Director of Kabra Extrusiontechnik Ltd.

"KET has taken a leap forward, being the first plastic machinery company from India to invest in an overseas plastic machinery company. GEC is a highly technology-focused company and has consistently ranked among the world’s top five high-end extrusion machinery manufacturers for the packaging industry," he added. KET will acquire a stake in the company’s equity and debt and provide additional capital resources to GEC.

Kabra Extrusiontechnik Ltd, part of the $120 million Kolsite Group of Companies, is India’s largest manufacturer and largest exporter of plastic extrusion equipment. KET is the leader in the production of pipe, profile & blown film machinery. KET commands about 40% market share in its product range in India and has over 8,000 installations in 65 countries worldwide.

GEC's products include material handling systems, extruders, dies, air ring systems, internal bubble cooling systems, cages and collapsers, oscillators and nips, winders, bag machine systems,  process control systems, tower structures, density systems, and cast film systems. It also provides film casting unit,cast winder, process control, extrusion coating, metering systems, dies and mandrel, pull roll, foam, winder, roll stack, and sheet line systems.

GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Daman, India, Kabra Gloucester Engineering.

GEC and the Kolsite Group established a joint venture, Kabra Gloucester Engineering Ltd. (KGE), in Daman India in 2009. The joint venture recently received an order for a 5-Layer Blown Film Line from Propyl Pack India and is actively developing new products to address international markets.

GEC, being in the capital goods business, was hit adversely by the 2008 USA recession.

"We are extremely pleased to expand our relationship with Kabra, which has been an excellent partner throughout our joint venture. As a new stakeholder, Kabra will help GEC develop opportunities in Southeast Asia, ensuring the company and its pipeline remain robust. We consider Kabra’s investment another significant vote of confidence in GEC and we look forward to collaborating with them as we continue to grow the company," said Mark Steele, CEO of Gloucester Engineering Company.

 
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