India-based Auto component manufacturer Suprajit Engineering Limited has taken over Wescon Controls, the US-based control cables maker, by purchasing 100% outstanding equity share capital from Shell Topco LP managed by a private equity fund - Nova Capital, UK. The enterprise value of Wescon was estimated at US$ 44.4 million, according to a press release.
Wescon Controls, a market leading manufacturer of control cables in the non-automotive outdoor power equipment (OPE) space, supplies to leading global OEMs such as MTD, Husqvarna, John Deere, Toro, Honda, etc.
With expected sales of US$ 40 million and EBIDTA margin in the range of 16-18 percent, Wescon has its plant in Wichita (Kansas, USA) and a Maquiladora facility in Juarez (Mexico). Wescon has a strong management and engineering team with a leading market position in the North American non-automotive cable space.
“Wescon is a perfect strategic fit for Suprajit. Wescon’s market leading position in North America in the OPE segment is a significant sectoral de-risk for Suprajit in its core business of cables. This will also prepare a solid ground for Suprajit to continue to increase its exposure in both automotive and non-automotive business in the Americas. With the added strength of Wescon, new plants in India and judicious augmentation of capacities across its plants, Suprajit will emerge as the second largest cable maker in the world in the near term. We will continue our endeavour of efficient capital allocation and profitable growth,” said K Ajith Kumar Rai, chairman and managing director of Suprajit Engineering.
Suprajit Engineering, one of the largest cable makers in the world, has 16 plants - 15 in India and one in the UK, which also operates as a technology centre. Suprajit’s customer list includes most Indian automotive majors and exports to many marquee global customers. Suprajit acquired Shah Concabs Pvt Limited in 2002, CTP Gills Cables of the UK in 2004 and automotive cable division of Pricol Limited through a slump sale in 2014 in the control cables space. It also acquired Phoenix Lamps Limited, a market leader in automotive halogen headlamps, in 2015 and recently announced merger of Phoenix Lamps with Suprajit Engineering.