Titagarh Wagons today announced acquisition of Italy-based Firema Trasporti to foray into metro coach and high-speed train manufacturing.
In a BSE filing, Titagarh Wagons announced "foray into metro coach and high-speed train manufacturing with the acquisition of the business of Firema Trasporti S.P.A based in Italy".
The transaction entails transfer of technology, all tangible and intangible assets and some liabilities relating to ongoing orders, the company added.Titagarh Wagons said that with this acquisition, its order book "increases from Rs 875 crore by addition of euro 220 million to total above Rs 2,400 crore".
Titagarh Wagons Vice-Chairman and Managing Director Umesh Chowdhary said: "The acquisition of Firema's business will greatly complement Titagarh's growth strategy and will add significant value to Titagarh's existing business as well..."
Titagarh Wagons said the business has been acquired through an SPV Titagarh Firema Adler registered in Milan, Italy, in which Titagarh holds a 90 per cent stake and balance 10 per cent by Adler Plastics.
The company further said: "The funding of about euro 20-25 million for the acquisition, new investment and operations of the company are planned primarily from internal accruals as well as proposed external borrowings.