Lloyd Electric & Engineering witnessed a rise in share price on Friday after it announced the signing of asset and share purchase agreement (ASPA) on Thursday to acquire Noske-Kaeser's Rail & Vehicle global business in Germany, New Zealand, Australia, Brazil and United States.
Noske-Kaeser, is an established global brand recognized for providing customized and innovative designs and solutions in the field of air-conditioning, refrigeration and special technology, having a existence of more than 130 years.
Lloyd said, 'The said acquisition represents a strategic opportunity for Lloyd to expand its product offering in heating, ventilation and air-conditioning (HVAC) solutions for rail and defense markets.'
'The combination of Lloyd and Noske-Kaeser's Rail & Vehicle businesses represents a key step forward in providing advanced products and services to HVAC customers at a global level,' it added.
The acquisition process has been run by Lloyd's in-house Mergers & Acquisitions team along with Allen & Overy LLP as legal advisors and KPMG as financial due diligence advisers.
The transaction is expected to close by end of October 2015.
Shares of Lloyd Electric & Engineering gained Rs 4.3, or 2.07% to settle at Rs 212.40 at the Bombay Stock Exchange (BSE) on Friday at 3:55 p.m.
The scrip has touched an intra-day high of Rs 218.00 and low of Rs 206.50. The total volume of shares traded at the BSE is 123,875.