Blue Star completes Naseer Electricals acquisition for Rs42 crore

14 Feb 2008

Blue Star Ltd has announced the completion of its acquisition of Bangalore-based electrical contracting firm Naseer Electricals Pvt Ltd, for around Rs42 crore, inclusive of the upfront payment, debt and escrow amount payable on fulfilment of conditions precedent.

The acquisition will enable Blue Start o deliver integrated mechanical, electrical and plumbing (MEP) contracting projects for the commercial building and infrastructure segments in which the company sees opportunities for future growth owing to the construction boom specifically in the infrastructure, hospitality, healthcare, IT and ITES segments as the economy expands.

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 Electricais  had a turnover of Rs107 crore in FY07  with a current order book of approximately Rs100 crore.

The founder, A S Dawood, is being retained as corporate advisor for the new entity.