Manugraph India set to acquire Dauphin Graphic Machines Inc for US $ 19.2 mn

Manugraph India Ltd on November 07, 2006 has announced that it is acquiring 'Dauphin Graphic Machines Inc’ (DGM), a leading manufacturer of Web Offset Printing Machines based in Pennsylvania, US. The Company & DGM together will now form the world largest single width press manufacturing Company. The combined entities will continue to maintain their manufacturing and assembling operations in three facilities - two in India, and one in the US Post acquisition, the Company will offer a full fledged product range to all its customers.

Mr Sanat Shah, Chairman, of the Company said, "We are extremely excited about this proposition and upon completion of this acquisition, we will not only be the pioneers in the web offset press business in India, but will also become the largest manufacturers of single width press in the world. We are already offering our services globally and look forward to further expand our business reach".

The Company is acquiring DGM, a profit making company with a current annual turnover of around US$ 70 million, for a cash consideration of US$ 19.2 Million. The Company’s annual turnover of Rs 320 Crores in Financial Year 2006 will be propelled to an expected consolidated turnover of Rs 750 Crores in the Financial Year 2008 as a result of this acquisition.

"Our goal of becoming global leaders in the manufacture of single width presses is being achieved. We have already invested heavily in state-of-the-art facilities, machining capabilities and engineering resources. With DGM, we now look forward to launch a new range of products globally", further added Mr Sanat Shah.

Avendus Advisors was the sole advisor to the Company for this transaction.

Source : Equity Bulls

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