Infrastructure major KEC International has entered into a definitive agreement to acquire 100 per cent equity in Spur Infrastructure for an enterprise value of Rs 62 crore.
The acquisition is expected to be completed within two months.
Spur Infra is an engineering, procurement and construction (EPC) company engaged in setting up of cross country oil and gas pipelines besides city gas distribution networks.
In the last three years, it had annual revenue in excess of Rs 100 crore, a profitable track record, technical expertise and experienced manpower.
Spur Infra has an order book of Rs 600 crore comprising of cross-country pipelines and city gas distribution network projects from marquee customers.
The acquisition of Spur Infra is in line with KEC's strategy to diversify into adjacent areas of growth.
Vimal Kejriwal, Managing Director and CEO of KEC International Ltd, said the company launched oil and gas pipelines EPC business in line with the government's thrust in the sector.
"This acquisition will enable us to accelerate growth in this sector and establish this business as one of our key growth drivers going forward," he said in a statement.
KEC International is the flagship company of four billion dollar RPG Group. It is currently executing projects in over 30 countries and has a footprint in 100-plus countries.
( With inputs from ANI )
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