Newbridge may acquire Sigma Electric for $150m
US-BASED private equity player Newbridge is in talks to acquire Sigma Electric Manufacturing Corporation. The deal size is estimated around about $150 million and talks have been going on for some time, sources said.
Sigma, based in Raleigh, North Carolina, makes about 1,500 products, including cable connectors and transformer connectors for firms such as ABB, Delphi and General Electric. In India, its plants are located in Pune and Jaipur.
The company was set up by India-born engineer Sajjan Aggarwal who is exploring options to exit the venture. Newbridge, part of the Texas Pacific group, earlier this year, along with Temasek, had sold its stake in Hyderabad-based Matrix Labs to the US-based Mylan. The firm has also invested $100 million for 49% in Shriram Holdings (Chennai), which is into truck financing.
Puneet Bhatia, head of Newbridge in India, did not comment on the deal. The domestic electrical equipment industry is gearing up for fast growth following the government’s commitment to add 40,000 mw during the 10th Plan. Moreover, the global power scenario is changing due to the demand for electricity to support industrial growth. The domestic electrical equipment industry is estimated to be worth Rs 50,000 crore.
Sigma Electric has its group company Semco Electric at Pune and Ultratech Metals India at Jaipur. Its headquarters in North Carolina serves as main receiving location as well as the distribution centre for all North American and Latin American customers. In Pune, the company has zinc, aluminium and copper alloy plants. It has an iron and copper alloy sand casting plant in Jaipur.Semco Electric serves markets such as US, Canada and other western countries.
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