Tube Investments of India (TII), a part of Murugappa group and a top manufacturer of bicycles, steel tubes and cold rolled steel, has acquired a controlling stake in Sedis group of France, with the purchase of 77 per cent of the equity from its holding company Financiere C10 for a consideration of euro 6.8 million.

According to a TII release, the company has acquired this shareholding directly from the financial investors in FC 10 (75 per cent) and a few other shareholders.

The management shareholders would continue to hold the remaining shares in FC 10 and be associated with Sedis for a period of three years.

Sedis manufactured industrial and engineering class chains in France and owned a product portfolio covering the requirements of a whole range of verticals including the high-growth infrastructure sector.

The Sedis products have a strong brand equity and its global client list includes names such as Charles De Gaulle airport, Metronet, Cairo Metro, Otis, RATP (Paris Metro), Calcia, Tubelines, British Environment Agency and Birse Civils.

Sedis group has recorded a turnover of euro 37 million  in 2008 with profit after tax at euro 1.35 million. During the first nine months of calendar 2009, the revenue was at euro 21 million and PAT stood at euro 0.55 million.

Sedis has a presence in nearly 100 countries through its vast distribution and sales network. It has two plants in France and a marketing company in the UK.

The French company has superior technology for manufacturing a range of engineering class chains and this acquisition would enable TII to access these high-tech applications  and make products that were now being imported.

Commenting on the acquisition, TII chairman M M Murugappan said the buy-out symbolised the growing dynamism in global business.

‘With Sedis we aspire to create a strong European base which together with our skills will put us on the path to becoming a global manufacturer of industrial chains,’ he said.

Expressing his views, TII managing director L Ramkumar said the synergies from this acquisition would not only help the company to absorb new technologies and strengthen its expertise, but also help it to emerge as a global player in the industrial chains business.

‘This acquisition will enable us to offer the requisite technical skills and a complete range of products to meet the requirements of our customers both in the Indian and global markets,’ he said.

According to Sedis CEO Robert Armand, ‘we have been associated with the Murugappa group for last nine years. Over these years we have seen the relationship grow on the back of qualitative, transparent and fair dealings.

The values of the Murugappa group and their commitment to growing the business have been the key considerations in fostering this relationship.

We are happy we have been able to come together and look forward to work with TII to combine the technical skills, market reach and engineering excellence to grow the chains business of both the companies.’ Kotak Investment Banking in Mumbai was the financial advisor to TII in the transaction.