GMM Pfaudler Limited (GMM) announced on August 20, 2020 signing of definitive agreements in connection with the acquisition, by the Company, of a majority shareholding (54%) in the global business of its holding company. The stake hold by holding company in GMM Pfaudler will be carved out to a separate entity and will not be a part of the transaction. Soon after the announcement, stakeholders instead of cherishing started questioning the management for the intricate structuring.

GMM is a leading supplier of process equipment to the pharmaceutical and chemical industries. GMM is the market leader and has more than five decades’ experience in manufacturing Glass Lined Equipment. Over the years GMM has diversified its product portfolio to include Mixing Systems, Filtration & Drying Equipment, Engineered Systems and Heavy Engineering Equipment. Currently, GMM is jointly owned/controlled by Pfaudler group/DBAG and by the Indian group i.e. Patel Family.

Pfaudler International S.a.r.l (Pfaudler group) through its multiple subsidiaries has manufacturing facilities on four continents. Pfaudler is present on the market with several branded product lines covering a broad portfolio that includes fluoropolymers, filtration & drying, engineered column systems, lab & process glass, sealing technology and glass-lined & alloy systems. Its Systems and Services capabilities allow them to support their Customers from the lab to the full-scale production plant, including optimizing and improving the whole life cycle of any process equipment normally used in the chemical, pharmaceutical and food industries.  Pfaudler group owns (before Offer For Sale) 50.44% stake in GMM. Pfaudler International S.a.r.l is ultimately owned and controlled by Deutsche Beteiligungs AG (DBAG) Fund VI (Guernsey) LP.

GMM-Pfaudler-DBAG-Restructuring-PE-MNC-1

Deutsche Beteiligungs AG (DBAG), a listed private equity company, invests alongside those funds predominantly in well-positioned mid-market companies with development potential. Pfaudler group is currently owned by DBAG.

The Transaction

GMM will acquire 34.4% of the global business of Holding Company by itself and 19.6% of the Pfaudler Group through its wholly-owned subsidiary, Mavag AG. As part of the transaction, Promotors of GMM (Patel Family), will also acquire 26% of the shareholding in the Holding Company.

The balance 20% of the Holding Company will continue to be held by DBAG, the existing ultimate shareholders of the Pfaudler Group.

Global Businesses owned by the Holding Company

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