NEW DELHI, Oct 8: Blackstone Group today announced that it has signed an agreement to acquire 12.5 per cent stake of International Tractors Ltd (ITL), the flagship company of the Sonalika Group, for about Rs 520 crore.
Blackstone Group’s affiliate Blackstone Capital Partners (Singapore) VI has signed an agreement to acquire 12.5 per cent stake of ITL in a structured transaction for up to 100 million dollars (Rs 520 crore), the company said in a statement.
“…ITL’s tractors are in great demand in international markets. We are excited to partner with the ITL management team and look forward to helping the company achieve new heights,” Akhil Gupta, Senior Managing Director and Chairman of Blackstone India, said.
ITL is a leading manufacturer of tractors under the brand name ‘Sonalika’.
Incorporated in 1995, ITL currently has 10 per cent share of the domestic tractor market.
It also exports tractors to over 70 countries worldwide.
The Delhi-based company has a core manufacturing plant in Hoshiarpur, Punjab.
“Blackstone in India has an exceptional track record in partnering with companies during their growth phase. We have already witnessed the value-addition that they bring to us. Their strategic inputs will further enable us to achieve our ambitious growth plans. In addition to helping us scale up our operations, this deal will provide us access to Blackstone’s global best practices,” ITL Chairman L D Mittal said.
New Delhi-based SSV Fincorp Services was the exclusive advisor for this transaction.
(UNI)
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