The company will acquire 34.4% of the Pfaudler Group by itself and another 19.6% through its wholly-owned subsidiary Mavag AG. Additionally, the Patel family, the promoters of GMM Pfaudler will acquire an a 26% stake in the Pfaudler Group. DBAG will continue to retain the balance 20% stake.
GMM is a supplier of process equipment for the pharmaceutical and chemical industries. The company’s stock lost 1.21% to close at Rs 5878.55 per share on the BSE on Thursday.
Post acquisition, GMM will become the ultimate holding company with the entire business of Pfaudler being subsumed into itself.
“Over the last five years, we have shown an unparalleled track record of growth at GMM and it is now time to take our Company to the next level through this acquisition,” said Tarak Patel, managing director of GMM Pfaudler.
Pfaudler Inc., USA had acquired a 40% stake in Gujarat Machinery Manufacturers in 1987. It further increased its stake to 51% in 1999 and the name of the company was changed to GMM Pfaudler Ltd. In 2015, DBAG acquired Pfaudler Inc.
“Being an integral part of Pfaudler for more than 3 decades, not only do we understand the business very well but have also managed to build a collaborative relationship with the different Pfaudler units around the world,” Patel said.