M&M buys major stake in 2 Australian aerospace firms

M&M buys major stake in 2 Australian aerospace firms

M&M buys major stake in 2 Australian aerospace firms

M & M President (Systech sector) Hemant Luthra announces acquisition of majority stake in two Australian companies Aerostaff Australia and Gippsland Aeronautics during a press conference in Mumbai on Tuesday. PTI

The equity acquisitions in two Australian companies has been done by the Group jointly with Kotak Private Equity with a total commitment of about Rs 175 crore. With this move, M&M has entered into the global aerospace components and the aviation markets.

The current acquisition, continues the commitment M&M made to this industry in 2006, with the acquisition of Engineering Design Company, Plexion Technologies.

Aerostaff Australia (AA) is a component manufacturer of high-precision close-tolerance aircraft components & assemblies for large aerospace OEMs and its acquisition will help M&M in the burgeoning defence offset and commercial aviation market.

At the same time, acquiring stake in Gippslan Aeronautics (GA) signals M&M entry into the 2-20 seater, turbo-prop market, which is among the fastest growing segments in general aviation.  In fact, GA is an established brand in general aviation and has delivered planes in over 30 countries.

Systech Sector President and M&M Board member Hemant Luthra said M&M will retain the existing management of both the companies, thereby securing the services of the founders who developed this technology. In line with this, a plant is being set up in company in Bangalore to provide dual shoring cost benefits to customers.

Further, M&M is contemplating to make a foray into Latin American countries like Brazil, Chile and Argentina where opportunities are plenty owing to geo-ecological difficulties there, Luthra added.