Warburg Pincus, the American private equity firm, has purchased a minority share in Avtec, the engineering equipment manufacturer. The terms of the acquisition were not made public.
The purchase would provide Actis, the British investor, an exit out of the manufacturer and would use the proceeds to fund the expansion plans of the company. Actis had purchased the 30% shareholdings back in 2005 for US$17.8 million. The firm was promoted and diversified through multi billion dollar conglomerate C.K. Birla Group with business interests in cement manufacturing, auto components, paper, real estate, automotive, consumer electricals among others.
In a statement, Avtec Chairman CK Birla said, "We look forward to working together and creating an even more valuable company. We greatly appreciate Actis' contribution to AVTEC's growth over the past few years."
This is the second of a series of transactions for the American firm, where just last week it had sold off its controlling shareholdings in Alliance Tire Group of India to another American firm, KKR& Co. LP.
In a statement, Ernst and Young had advised both Actis and Avtec in the transaction.
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