Blue Star completes acquisition of Naseer Electricals for a consideration upto Rs 42 crore

Blue Star Ltd has announced that the Company has completed the strategic acquisition of the businesses of Naseer Electricals Pvt Ltd, a leading Electrical Contracting firm as a going concern for a consideration upto Rs 42 crore which includes upfront payment, debt and escrow amount payable on fulfillment of certain conditions. This move will enable Blue Star, which is the leader in central airconditoning in the country, to deliver integrated Mechanical, Electrical & Plumbing (MEP) contracting projects for the commercial building and infrastructure segments.

Growth Opportunities

The growing Indian economy and the construction boom, specifically in the infrastructure, hospitality, healthcare, IT and ITES segments, offer attractive business opportunities in the MEP contracting space. Many customers of Blue Star have been seeking Electrical Contracting services from the Company. While Blue Star will continue to focus on its core businesses of airconditioning and commercial refrigeration as manufacturer, contractor and service provider, it will enhance its capabilities in the MEP space by entering Electrical Contracting through this transaction.

- Naseer Electricals Pvt Ltd

Naseer Electricais Pvt Ltd, headquartered at Bangalore, is an Electrical Contracting firm with a turnover of Rs 107 crore (FY07) and a strong presence in South India. Founded by Mr. A S Dawood, the Managing Director, Naseer Electricals enjoys an exceptional reputation in terms of customer satisfaction. The current order book is approximately Rs 100 crore.

- Mr. A S Dawood retained as Corporate Advisor

Mr. A S Dawood has been retained by the Company as Corporate Advisor for the new entity.

- Transaction Details

With effect from the Closing Date (January 24, 2008), the businesses of Naseer Electricals including the pending orders, assets and liabilities stand transferred to the Company. All 117 permanent employees of Naseer Electricals have been employed by the Company.