Blue Star to pay Rs 80 crore upfront for D S Gupta Construction acquisition
26 July 2010
Mumbai-based airconditioning and commercial refrigeration products maker Blue Star said that its board of directors today approved an upfront consideration of Rs80 crore for the acquisition of plumbing and fire fighting major D S Gupta Construction.
Blue Star Electro-Mechanical Limited, a wholly-owned subsidiary of Blue Star Limited, plans to acquire Mumbai-based D S Gupta Construction Pvt Ltd on a slump sale basis. The transaction is subject to customary closing conditions.
In May, Blue Star had announced its plans to acquire D S Gupta Construction (See: Blue Star to acquire plumbing, fire services firm D S Gupta Construction).
The turnover of D S Gupta Construction was in excess of Rs 130 crore in FY10 and the Company has a carry forward order book of around Rs 300 crore.
With this acquisition, Blue Star will strengthen an important pillar in its electro mechanical projects offering for its commercial and residential real estate customers.
The promoters of D S Gupta Construction will continue to manage the business for the foreseeable future, Blue Star said.
Blue Star has been developing in-house plumbing and fire fighting contracting skills and had executed plumbing and fire fighting contracting projects such as Delhi Airport Metro Express Line; Hotel Shangri-La, Mumbai; ESIC Hospital, Mumbai, Hotel Park Hyatt, Chennai and Sea Valley Resort, Vizag.
However, it opted to speed up the expansion of its skills-set inorganically in order to leverage the growing growth opportunities.