The Hindu Business Line : GMM Pfaudler acquires Swiss firm Mavag

Bangalore, Jan.11 GMM Pfaudler, engaged in the manufacture and supply of glass-lined vessels and reactors, has acquired Mavag AG, a Zurich-based high-end engineered equipment company, for an undisclosed sum. The two companies would leverage on their synergies to emerge as leading suppliers of critical equipment for the pharma and biotechnology industry. With this acquisition, GMM hopes to significantly increase its topline. GMM bought the Swiss company through a special vehicle, GMM Mavag AG, created recently in Zurich for the purpose of acquisition, said Mr Tarak Patel, Executive Director of GMM Pfaudler.

Mavag, with turnover of over Rs 50 crore in calendar 2007, is a leading supplier of highly engineered critical equipment for the pharmaceutical, bio engineering and fine chemical industries.

Among others, Mavag’s top driven spherical dryer, is a modern dryer which offers superior drying efficiency as compared to conventional technologies, in addition to savings in operating costs.

Mavag, a strong brand in Europe, could help the Indian pharma industry upgrade its products to the stringent international standards and become competitive in the market, said Mr Ashok Pillai, Chief Operator Officer, GMM Pfaudler.

Mr Pillai told Business Line that the acquisition will be funded entirely from GMM’s cash reserves. He said the Swiss company will retain its name.

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