Wipro to acquire Brazil engineering firm
11 May 2011
Wipro Limited has announced it would acquire a controlling stake in Brazilian hydraulic cylinder manufacturer RKM Equipamentos Hidrulicos Ltd. The company did not disclose the value of the transaction.
The deal would be completed in the quarter, subject to regulatory approvals, it said in a regulatory filing to the exchanges.
The acquired firm would form part of Wipro's Infrastructure Engineering division, a global company supplying precision engineered hydraulic cylinders and components to Tier 1 companies.
Wipro Infrastructure Engineering, a global leader in precision engineered hydraulic cylinders and components, is a Tier-1 supplier to global Original Equipment Manufacturers (OEMs) of construction and earth moving machinery, material handling equipment, forestry equipment, heavy and medium commercial vehicles among other industries, across Asia and Europe.
Commenting on the acquisition, Wipro Infrastructure Engineering president Pratik Kumar said, Brazil was an attractive market for the company, driven by a high growth economy and huge investments in infrastructure over the next few years. He added that RKM provided Wipro an ideal platform to expand and extend its portfolio of offerings in the Brazilian market as well as rest of the Latin America.