Stalwart Advisors

Exide to acquire Tudor’s factory in Gujarat

As per press release, this acquisition of Tudor’s 15.9-acre factory is expected to be concluded within a month. It is going to be the company’s first acquisition in 20 years: In 1998, Exide had acquired battery maker Standard Furukawa.

Tudor is a subsidiary of GNB Industrial Power (UK) Ltd, and is part of Exide Technologies group. It used to manufacture and sell lead-acid storage batteries under the Prestolite brand in India. But its plant in Gujarat is shut for years. When in operation, the factory could produce at least 450,000 batteries per year.

In May last year, Exide had entered into a settlement agreement with Exide Technologies of the US over the ownership and usage of the Exide trademark in India, capping 19 years of legal battle. Under the agreement, Exide Technologies perpetually gave up its claim to the Exide trademark in India.

The sale of Tudor’s factory marks the exit of the US-based Exide Technologies from India. The acquisition cost must be below Rs 25 Cr.; if the price exceeded this threshold, the company would have to mention the price in its regulatory filing in line with Indian securities market regulations.

As per news article, the acquisition of an existing factory would allow Exide to rapidly start a new manufacturing unit. Given they are in the business of hazardous materials it takes a long time to get clearances for a new factory.

Press Release: https://www.bseindia.com/xml-data/corpfiling/AttachHis/bac42327-58cf-4961-bc28-5cec3a50f5cb.pdf

News Article: https://www.livemint.com/Companies/LTHW1XRHK6VQfAa6KdtGnO/Exide-Industries-to-acquire-Tudors-factory-in-Gujarat.html


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