CG acquires Sweden based Emotron Group
CG today announced acquisition of Sweden based Emotron Group. The enterprise value of this acquisition is equivalent to 57.8 Mn Euros. Currently (Dec 31, 2010) Emotron has revenues equivalent of Euro 37.3 Mn and Earnings before interest, depreciation, taxation and amortization (EBIDTA) equivalent of Euro 4.4 Mn.
Photo: Philip Schwarz, CEO of Emotron, & S M Trehan, CEO of CG
Established in 1975 with the merger of three companies, Emotron is a power electronics and engineering company which is engaged in engineering and manufacturing of drive solutions with latest IGBT based technology for variable frequency drives (VFDs) with range from 200 to 690V, 0.2kW to 3000kW. The focus application areas are: Flow Control (pumps, fans, compressors), Material handling (cranes, crushers, mills, conveyors), and Lift control (elevators). Emotron also manufacturers Soft starters & shaft power monitors widely used in several industrial applications. The Company makes state of the art Rotary heat exchangers with Switch Reluctance Motors for saving the energy. They also have the ability to make Medium voltage VFDs. Emotron has long experience in West European markets especially Germany & BENELUX and has requisite application knowledge of drive technology.
With this acquisition, CG has taken a big step by building capability for a global presence in offering comprehensive energy saving solutions with latest power electronics technology. The rising energy costs, global focus on energy efficiency, low carbon emissions coupled with global legislations for energy efficiency is expected to catapult the global market for VFDs from 10 Bn USD in 2010 to USD 16 Bn till 2014. CG already has its operations based in Europe & offers variety of motors and generators for Industrial markets. With this combination, both companies are expected to substantially gain and become a major force to reckon with in the Global VFD/ Industrial Motors market. This acquisition also enables CG to offer integrated solutions along with its profound application domain knowledge of motors in India. Present market for VFDs in India is estimated to be USD 375 Mn and is likely to grow rapidly with industry focusing on green products. This acquisition fills the gap in the automation solutions space for CG’s Industrial business.