GMM Pfaudler Ltd, which supplies process equipment to the pharmaceutical and chemical industries, on Wednesday said it has entered into an agreement with De Dietrich Process Systems India Pvt Ltd (DDPSI) for acquiring the latter’s glass lined equipment manufacturing facility at Nacharam in Hyderabad.

 

The company had initially planned setting up a greenfield manufacturing facility but then decided to go ahead with the acquisition route later.

 

The company said it had signed a binding term sheet for the proposed acquisition of the facility on 30th June 2020, which is spread across 6 acres, for a consideration of Euro 6.25 million. The transaction is subject to completion of the final due diligence and other documentation. The expected timeline for completion of the acquisition is 31st July 2020. 

 

Commenting on the acquisition, Tarak Patel, Managing Director of GMM Pfaudler said "We are happy to announce this acquisition as it will give us access to ready-made Glass Lined Equipment manufacturing capacity which will further strengthen our presence in the region."

 

He further added "We are now well poised to take advantage of the expected investment in the upcoming Pharma City in Hyderabad and maintain our market leadership position in India."

 

DDPSI is a subsidiary of De Dietrich Process System headquartered in France which is a global supplier of engineered systems, equipment and services for the fine chemical and pharmaceutical industries.