GMM Pfaudler, an engineering firm, saw its shares rise nearly 3% to ₹1,829.85 apiece in Friday's early trade after the company, in an exchange filing on Thursday, said that it had entered into an agreement on September 14, 2023, through its wholly owned subsidiary, GMM Pfaudler US Inc., to acquire 100% share capital of Professional Mixing Equipment Inc. ("MixPro").
"A total consideration of $7 million will be paid to acquire MixPro, and the transaction will be funded through internal accruals and is expected to close by October 2023," the company said in an exchange filing.
Commenting on this development, MD Tarak Patel said, "The acquisition of MixPro is in line with our strategy of building our Mixing Technologies business, it enhances our product portfolio and also further strengthens our process know-how and simulation/testing capabilities. With the acquisitions of MixPro and Mixel now complete, we have created a global mixing technology platform that can cater to a wide range of industry segments."
MixPro, a producer of agitators and mixers, specialises in the design and manufacture of standard and customised mixing systems used across various industries, including mineral processing, pulp and paper, and flue gas desulfurisation. MixPro is located in Brampton, Canada, as per the company's regulatory filing.
GMM Pfaudler is a global leader in corrosion-resistant technologies, systems, and services for the chemical, pharmaceutical, food, and energy industries. The company's shares in the last one month delivered a return of 17.90%, and in the last three-month period, they are up by 23%.
On August 18, DBAG Fund VI sold a 13.6% equity stake in GMM Pfaudler through bulk deals. Of this, a 9.9% equity stake was purchased by funds affiliated with ChrysCapital, a leading India-focused investment firm, and the rest 3.7% equity stake in the company was purchased by other investors.
In Q1FY24, the company reported a consolidated net profit of ₹54 crore, down from ₹61 crore posted in the same period of last year. Its revenue from operations during the same quarter rose 23.41% to ₹912 crore from ₹739 crore recorded in Q1 of the last fiscal.
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