Indian extrusion supplier buys 15% stake in Gloucester Engineering
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Indian extrusion equipment manufacturer Kabra Extrusiontechnik Ltd. has acquired a 15 per cent stake in U.S.-based film equipment maker Gloucester Engineering Co. Inc. (GEC).
According to a Kabra press release, Kabra’s board of directors approved a proposal to spend more than US$4 million to acquire the minority stake in Gloucester, Mass.-based GEC.
Formerly known as Battenfeld Gloucester Engineering Co., GEC already has an 11 per cent stake in Kabra. Also, GEC and Kabra established a joint venture, Kabra Gloucester Engineering Ltd., in Daman, India in 2009. According to Mumbai-based Kabra, this new deal will enhance the partnership and allow GEC to explore the South East Asian markets further and give better exposure to Kabra in the international market.
Kabra Extrusiontechnik is India’s largest manufacturer and largest exporter of plastic extrusion equipment.
“Kabra has taken a leap forward, being the first plastic machinery company from India to invest in an overseas plastic machinery company,” said S. V. Kabra, the company’s chairman and managing director. “GEC is a highly technology-focused company and has consistently ranked among the world’s top five high-end extrusion machinery manufacturers for the packaging industry. Through its minority investment in GEC, Kabra will gain exposure to customers in the North American, European and other western world markets.”
The transaction comes soon after GEC was pulled out of Chapter 11 protection. With the backing of New York City-based private equity firm Blue Wolf Capital Partners, GEC filed a reorganization plan that was passed a few weeks ago, making Blue Wolf its majority owner.