Shinryo Corporation, a global leader in HVAC Systems, is all set to acquire 85 per cent stake in Mumbai-based GMP Technical Solutions, India's 2nd largest player in cleanroom business. GMP Technical Solutions, owned by Vascon Engineers, will continue to retain the remaining 15 per cent stake.  

 Vascon Engineers expects to get on the completion of the proposed transaction for a consideration of Rs. 157 crore for a gross Equity Value of Rs. 185 crore.

"The proposed transaction will be completed after fulfillment of the conditions under the share purchase agreement and is expected to be completed within next 45 days," Vascon Engineers informed the stock exchange.

The deal was facilitated by Singhi Advisors that acted as exclusive advisors. This transaction is the 7th transaction of Singhi Advisors in the Indo-Japan Corridor and the conviction that Singhi Advisors has in the potential of India’s fast growing Cleanroom Partition and HVAC solutions space. This transaction is the 3rd acquisition by 3 different Japanese players in this segment, which is driven by the growth in the end-user industries of electronics & mobile services, semiconductors, pharmaceuticals, and battery manufacturing in India.

 “This deal highlights our longstanding relationship with Vascon Engineers Ltd and our experience with Japanese firms like Shinryo Corporation. Given our deep understanding of this sector, we identified Shinryo to be a perfect fit for GMP, which would integrate well with the HVAC services business of Suvidha Engineers India Pvt Ltd, Shinryo’s earlier acquisition in India, and enhance Shinryo’s capability to compete with industry frontrunners. Further, it strategically made sense for Vascon to divest its non-core business and realise surplus cash, while GMP’s management retaining a 15% stake ensures seamless business continuity," Mahesh Singhi, Founder & Managing Director,  Singhi Advisors, said.