VBG Group

VBG Group has today signed an agreement to acquire all shares in the Indian company Rathi Transpower Pvt including its subsidiaries in Australia and Germany ("Rathi Transpower"). The total purchase price is estimated to 300 MSEK. The price includes the purchase of the land, where the factory in Alandi, Pune is located, as well as an earn-out component of estimated 23 MSEK based on the outcome of EBITDA for the financial year 2023/2024.

The closing of the acquisition is expected to be completed during the fourth quarter 2023 and is subject to closing conditions regarding transfer of the land. The acquisition will have a limited impact on VBG Group's results for 2023. The expected acquisition is fully financed through existing credit facilities.

Rathi Transpower Pvt. Limited was founded in 1965 and is part of the family owned Rathi Group of companies. The acquisition includes the company's two production facilities in Pune and Kolhapur in India. Both facilities are certified according to ISO 9001 and ISO 14001. The company has a total of 246 permanent employees and just over 200 contract employees. Rathi Transpower Pvt. Limited had a turnover of 150 MSEK with an adjusted EBITDA-margin of approx. 17% for the financial year 2022/2023, ending 31^st of March.

Rathi Transpower Pvt. Limited develops, manufactures, and markets a wide range of coupling products and coupling solutions for advanced applications in industrial segments.

"The acquisition expands the product portfolio of Ringfeder Power Transmission and brings our division closer to the markets in Asia, through a manufacturing base in India", says Thomas Moka Division Manager at Ringfeder Power Transmission.  "With our combined product offering and extensive sales network, we will strengthen our position in several customer segments."

Adit Rathi CEO of Rathi Transpower Pvt. Limited, adds: "Our company will fit into the VBG Group very well as we share the same long-term perspective of doing business and also share the same values."

"The acquisition is an important step in our journey to grow as an industrial group and to strengthen our presence in India", says VBG Group President and CEO Anders Erkén. "The acquisition will also offer a platform for our other divisions to develop in the expanding Indian market."