Bangalore -- Wipro Infrastructure Engineering (WIN), the global firm's fluid power subsidiary, will acquire Hydrauto Group AB of Sweden for Rs.1.42 billion ($31 million) in an all-cash deal to foray in the European market.
According to a company statement here Thursday, the transaction acquiring 100 percent stake in the Swedish firm will be completed by December.
The Rs.2.6-billion subsidiary (WIN) is engaged in the business of precision hydraulic components and solutions. It manufactures hydraulic cylinders for material handling, forestry and construction equipment for domestic and Asian markets.
Growth in India is driven by huge investments in infrastructure and industrial segments.
As a leading provider of hydraulic components and solutions in Europe, the $112-million Hydrauto employs about 600 people and has an installed capacity to manufacture 325,000 cylinders per annum.
"The acquisition gives us a unique Asia-Europe footprint, a customer base built over the decades and complementary engineering skills," WIN managing director Anurag Behar said.
The global hydraulic components industry is estimated to be about $17 billion annually, catering to the construction equipment, material handling, farm and industrial segments.
"We think Wipro is a strategic fit, being leaders in Asia and having an established presence in the APAC region," Hydrauto CEO Olov Larsson said.
As the largest cylinder manufacturer in the sub-continent, WIN rolls out high performance pumps, valves and power take-offs at its units in Bangalore, Hindupur (Andhra Pradesh) and Chennai, with a combined installed capacity of 400,000 units per annum.