New Delhi: Auto parts maker Suprajit Engineering Ltd Monday said that it has bought Wescon Controls, a US-based control cables maker, from Shell Topco Lp for an enterprise value of $44.4 million (about Rs295 crore).
Shell Topco is managed by Nova Capital, UK, a private equity fund.
Bengaluru-based Suprajit Engineering said the transaction was funded by cash and debt in the ratio of 50:50. Wescon supplies components to manufacturers such as John Deere, Toro Co. and Honda Motor Co.
While Grant Thornton India was the financial adviser to Suprajit on the transaction, Citibank NA was the financier for the transaction.
Incorporated in 1985, Suprajit Engineering makes two-wheeler control cables. It has 16 plants—15 in India and one in the UK.
“Wescon’s market leading position in North America in OPE (outdoor power equipment) segment is a significant sectoral de-risk for Suprajit in its core business of cables. This will also prepare solid ground for Suprajit to continue to increase its exposure in both automotive and non-automotive business in the Americas,” K. Ajith Kumar Rai, chairman and managing director of Suprajit Engineering, said in the statement.