Kalpataru Power Transmission to Acquire Fasttel Engenharia, Brazil
Kalpataru Power do Brasil Participações, a wholly-owned subsidiary of Kalpataru Power Transmission limited (KPTL) in Brazil has signed a definitive agreement to acquire 51 % stake in Fasttel Engenharia Ltda, Brazil for a value of USD 8.80 million (approx. Rs 64 crore). The transaction is likely to close by the end of Q1 FY22.
Through this deal Kalpataru will gain to tap the Brazilian market and to enhance its footprints in Latin America.
About Fasttel Engenharia Ltda: Fasttel’s business portfolio includes engineering, procurement and construction (EPC) and maintenance of power transmission lines, substations and distribution systems across various voltage range up to 750 KV. Fasttel was founded in 1988.
Why Kalpataru Wants to Acquire Fasttel Engenharia Ltda
Commenting on the acquisition Sanjay Dalmia, Executive Director, KPTL said “This acquisition of Fasttel is of strategic fit to KPTL in order to capture local market opportunities in Brazil and expand business in Latin American market” as reported in ET dated 5th February 2021. He also added that “Brazil is a large and well-regulated power transmission and distribution market with sizable investment planned in next 10 years”.
Fasttel has an order book of around USD 95 million as on date. Fasttel has recorded revenue growth of more than 25% CAGR over the last 5 years.
About Kalpataru Power Transmission Ltd. (KPTL): KPTL is an Engineering, Procurement, and Construction (EPC) company. Kalpataru delivers complete solutions covering design, testing, fabrication, erection and construction of transmission lines, Oil and Gas infrastructure and railways projects on a turnkey basis. KPTL has established its footprints in 55 countries spread across five continents.
