KPTL to acquire 51% stake in Brazil’s Fasttel Engenharia
India, Mumbai: Kalpataru Power Transmission Ltd (KPTL) is to acquire controlling stake of 51 % in Fasttel Engenharia Ltda, Brazil (Fasttel).
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India, Mumbai: Kalpataru Power Transmission Ltd (KPTL) is to acquire controlling stake of 51 % in Fasttel Engenharia Ltda, Brazil (Fasttel).
The global EPC player, KPTL, has invested about $8.80 M, subject to customary adjustments. The agreement was signed by Kalpataru Power do Brasil Participações Ltda, a wholly owned subsidiary of KPTL in Brazil.
The move was in line with the company’s strategy to strengthen its core engineering, procurement & construction (EPC) business and have greater geographical presence in stable and growing markets.
1988-founded Fasttel, with revenue of around $47 M in 2020 and has a profitable track record, specialized in EPC and maintenance of power transmission lines, substation and distribution systems across various voltage range up to 750 kV. It has presence in Brazil with an order book of around $95 M as on date.
However, the transaction is expected to be closed by the end of Q1 FY22.
Commenting on the acquisition, Sanjay Dalmia, Executive Director, KPTL said, “We continue to expand our geographical reach aligned to our vision of being a local player in the global environment. This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American market.”
Dalmia further said, “Fasttel has a track record of revenue growth of more than 25 % CAGR over the last 5 years along with consistent profitability. It has experienced manpower which does in-house engineering, procurement, land survey, planning, environment clearances and construction.”
“We look forward to welcoming Fasttel into the Kalpataru family. Both the companies will leverage each other’s capabilities and look forward to creating a strong presence in Brazil and larger Latin American T&D market,” Dalmia said.