M&A

M&A

Escorts Kubota to sell railway equipment biz to Sona Comstar for Rs.1,600-Cr

BSE Announcement  

Faridabad-based Escorts Kubota (EKL) is to sell its railway equipment business division, via a slump sale, to fellow publicly listed Sona BLW Precision Forgings Limited (Sona Comstar) for a cash consideration of INR 1,600 crore.Morgan Stanley India is the exclusive financial advisor to EKL on this transaction and DMD Advocates is the company’s Legal Advisor. Transaction Square was the financial and tax advisor to the seller.The division being sold makes products like brakes, couplers, suspension systems, and friction and rubber products. It also has a few new products in the pipeline including HVAC systems, electrical control panels, vacuum evacuation systems, and automatic plug doors.