NEW DELHI: Shares of Symphony rallied 3 per cent after the company announced it has signed an agreement to purchase 95 per cent stake in Climate Technologies Pty Limited, Australia's leading manufacturer of cooling and heating appliances.
The acquisition will be executed at a valuation range of Rs 201- Rs 221 crore depending on the achievement of FY18 EBITDA (June ended).
Further, the valuation is subject to change based on customary closing conditions.
The company plans to finance the acquisition through a judicious mix of debt and internal cash accruals.Headquartered in Adelaide, South Australia, Climate Technologies (CT) manufactures and sells evaporative air coolers, ducted gas heaters, and other cooling products in Australia and USA.
CT was established by Ted Celi in December 1976 and he and his family effectively own 90 per cent equity stake while 10 per cent stake is owned by Tim O' Leary, current CEO of the company.
With iconic brands such as 'Bonaire' (a history of 64 years) and 'Celair' (46 years), Climate Technologies is one of Australia's most recognised manufacturers and suppliers of cooling and heating appliances.
CT commands 30 per cent and 25 per cent market share of the domestic Australian evaporative air coolers and ducted gas heaters market, respectively.
The company forayed into the US markets through a relationship with Home Depot, who now considers CT as an innovator in its class.