Hindustan Dorr-Oliver has bought UK-based DavyMarkham for £9.50 million to gain an entry into the heavy engineering space
Engineering solutions company Hindustan Dorr-Oliver Ltd (HDO) on Tuesday said that it has acquired UK-based heavy engineering company DavyMarkham for £9.50 million (about Rs65 crore), reports PTI.
The acquisition provides HDO, part of Hyderabad-based IVRCL Infrastructure and Projects Ltd, an entry into the heavy engineering space, it said in a filing to the National Stock Exchange.
DavyMarkham is a 180-year-old manufacturing company based in Sheffield, UK. It is engaged in designing, manufacturing and assembling large equipment used in the mining, quarrying, power generation, oil, gas and nuclear sectors.
DavyMarkham's managing director Kevin Parkin and financial director Duncan Hay will continue their current roles along with the management team, the Indian company said.
"DavyMarkham was on the verge of closure four years ago, but with the financial support of our buyout partner, Endless, we have been able to turn around the business and make it an attractive acquisition prospect," Mr Parkin said.
"HDO paid £9.50 million towards 100% (buyout), which include £8.50 million towards equity value and £1 million towards the shareholder loan," the Indian entity said.
DavyMarkham has around £13 million order book in mining and power, mainly from North America and European customers. HDO is looking at marketing the products in the Indian market, it further said.