File photo: IFB Industries logo.
Mumbai: Kolkata-based whitegoods company firm IFB Industries has taken over the commercial laundry equipment manufacturing business of Ramsons group, an industry leader in the segment, for Rs 35 crore in a slump sale.
The domestic commercial laundry equipment market is around Rs 500 crore and after the Ramsons deal, IFB will become the single largest player in the market as it gives access to over 2,000 customers and over 5,000 installation bases of Ramsons across the country.
IFB had entered into a definitive agreement with the Bengaluru-based Ramsons group to buy its commercial laundry equipment manufacturing business, which are mostly used by the hospitality sector, in July on a slump sale basis.
The deal will help IFB consolidate and grow its laundry equipment business.
"We have decided to focus on our core businesses of manufacturing garment finishing equipment and leather processing equipment and to exit the commercial laundry equipment business.
The deal has just been completed for a consideration of Rs 35 crore," Ramsons group managing director Sunder Belani told PTI.
He said, going forward, his company will retain the garment finishing equipment and leather processing equipment manufacturing businesses.
Its engineering divisions are located in Kolkata and Bengaluru.
Ramsons group has been a leading manufacturer of commercial laundry equipment, garment finishing and leather processing equipment for the past many decades.
Over the past six decades, it has established itself in manufacturing, installing and servicing modern turnkey laundry and apparel finishing equipment.
The diversified IFB group began operations in 1974 in collaboration with Hienrich Schmid of Switzerland and today it has interests in consumer appliances like washing machines, clothes dryers, kitchen solutions, ACs, dishwashers, auto components like seating systems, door systems and fine blanking business for the automotive, electrical sectors.
Mumbai-based M&A-focused investment bank Singhi Advisors was the sole advisor to the Ramsons group for the transaction.
The i-banker is working on over two dozen stressed asset deals now and has already completed six transactions worth around Rs 3,000 crore this so far fiscal.
Commercial laundry machines are employed by hotels, hospitals, education institutions, defense establishments, the Railways among others.
The IFB Industries closed around 3 per cent up at Rs 890 on the BSE on Wednesday, on a day when the index Sensex rallied 0.7 per cent.