BDA advises Larsen & Toubro on the divestment of L&T Plastics Machinery to Toshiba Machine Co
Business Development Asia LLC (“BDA”) is pleased to report that its client, Larsen & Toubro Ltd (“L&T”), a diversified, publicly traded Indian engineering group, has entered into an agreement with Japan-based Toshiba Machine Co., Ltd (“TMC”) to divest its entire stake in L&T Plastics Machinery Ltd (“LTPML”), for an undisclosed consideration. BDA served as the exclusive financial advisor to L&T on this transaction.
LTPML, a wholly owned subsidiary of L&T, manufactures and markets injection moulding machines. The company is the market leader in the Indian injection moulding machine market with a significant installed base of injection moulding machines across various sectors such as automotive, packaging and stationery. LTPML enjoys strong brand recognition and has valuable on-going customer relationships. The divestment is aligned with L&T’s strategic road map to exit non-core businesses and rationalize its portfolio.
TMC manufactures injection moulding machines and other machinery. It has manufacturing units in Japan and China and caters primarily to the Asian and North American markets. TMC’s proposed acquisition of LTPML is in line with its strategy to expand globally with a particular focus on developing countries.
BDA Transaction Team
Charles Maynard, Senior Managing Director, Beijing
Jeff Acton, Managing Director, Tokyo
Noriyuki Sonoda, Executive Senior Advisor, Tokyo
Kumar Mahtani, Assistant Director, Mumbai
Diwakar Mitr, Senior Associate, Mumbai
Akhil Bheda, Associate, Mumbai
About Larsen & Toubro (L&T)
L&T is a US$12.8bn technology, engineering, construction, manufacturing and financial services conglomerate with global operations. Its core businesses cover sectors critical to the economy including oil & gas, refinery, petrochemical, infrastructure and power. It is one of the largest and most respected companies in India’s private sector. A strong, customer-focused approach and the constant quest for top-class quality have enabled L&T to attain and sustain leadership in its major lines of business over seven decades. LTPML was originally formed as a joint venture with DemagErgotechGmBH in 2000. L&T acquired the JV partner’s stake in 2009, making LTPML its wholly owned subsidiary.
About Toshiba Machine Co. Ltd (TMC)
TMC, an affiliate of Toshiba Corporation, was established in 1938. It is listed on the Tokyo Stock Exchange. For the financial year ending March 2012, TMC generated revenues of JPY119bn (US$1.5bn) with profit after tax of JPY6bn (US$76m).
Business Development Asia LLC (“BDA”) is a leader in cross-border investment banking. BDA advises on M&A, capital raising, and restructuring. BDA has been consistently owned and managed by the same team since 1996, and has built a track record of providing independent advice to blue-chip corporate and financial sponsor clients from North America, Europe and Asia. BDA was named Investment Banking Firm of the Year by M&A Advisor in December 2010. BDA is headquartered in New York with offices in London, Beijing, Shanghai, Hong Kong, Mumbai, Bahrain, Seoul and Tokyo. For further information, please see www.bdallc.com.
For more information regarding this transaction, please contact Charles Maynard in Beijing at (86) 10 8535 0860, Jeff Acton in Tokyo at (81) 3 3433 5803 or Kumar Mahtani in Mumbai at (91) 22 6140 3800.