MUMBAI: Manugraph India Ltd will be acquiring US based Dauphin Graphic Machines Inc (DGM), a manufacturer of web offset printing machines for $ 192 million.
Manugraph India and DGM together will now form the world largest single width press manufacturing company. The combined entities will continue to maintain their manufacturing and assembling operations in three facilities – two in India, and one in the US post acquisition, the company will offer a full fledged product range to all its customers.
Manugraph India chairman Sanat Shah said, “We are extremely excited about this proposition and upon completion of this acquisition, we will not only be the pioneers in the web offset press business in India, but will also become the largest manufacturers of single width press in the world. We are already offering our services globally and look forward to further expand our business reach.”
The company is acquiring DGM, which has a current annual turnover of around $ 70 million, for a cash consideration of $ 19.2 million. Manugraph India’s annual turnover of Rs 3.20 billion (Rs 320 crores) in the financial year 2006 will be propelled to an expected consolidated turnover of Rs 7.50 billion (Rs 750 crores) in the financial year 2008 as a result of this acquisition.
“Our goal of becoming global leaders in the manufacture of single width presses is being achieved. We have already invested heavily in state-of-the-art facilities, machining capabilities and engineering resources. With DGM, we now look forward to launch a new range of products globally,” added Shah.
The company has called an extra ordinary general meeting on 12 December, 2006 to pass necessary resolution under the Companies Act, 1956 for issuing shares of the company on preferential basis to person other than the existing shareholders for an amount of $ 2.2 million subject to applicable of SEBI guidelines.
