Kilburn Engineering Ltd Plans to Acquire Monga Strayfield Pvt Ltd

On August 21, 2024, Kilburn Engineering Ltd announced its plan to acquire Monga Strayfield Pvt Ltd for up to ₹123 crore, pending adjustments based on due diligence and final agreements.

This acquisition is designed to enhance Kilburn’s product range and expand its market presence. Monga Strayfield, founded in 1968, is a global leader in radio frequency drying and heating solutions and has a strong footprint in the sheet metal fabrication industry, serving markets in the USA and Europe.

For FY24, Monga Strayfield reported a revenue of ₹72.90 crore, a profit after tax (PAT) of ₹15.41 crore, and a closing cash balance of ₹33.28 crore.

By acquiring Monga Strayfield, Kilburn aims to boost its drying solutions capabilities, particularly in radio frequency drying and heating, and to enter new markets such as textiles and packaged foods. Monga Strayfield’s sheet metal fabrication expertise will also enhance Kilburn’s international market position.

Commenting on the acquisition, Mr Ranjit Lala, Managing Director of Kilburn Engineering Ltd, said, “We are delighted to bring Monga Strayfield into our fold and are excited to leverage their domain knowledge in radio frequency drying and sheet metal fabrication. This acquisition complements Kilburn’s offerings and enables us to serve a broader customer base with enhanced solutions.”

Mr Amritanshu Khaitan, Director of Kilburn Engineering Ltd., added, “This acquisition is not only a positive step in adding a new vertical to Kilburn but also shareholder value accretive, improving the company’s overall profitability due to Monga Strayfield’s high operating margins. We believe this will propel Kilburn Engineering towards becoming a world-class manufacturer of dryers and heating solutions.”

About Kilburn Engineering Limited

Kilburn Engineering Ltd has been a top player in the industry for almost 40 years and is known for its technological innovations. The company specialises in designing, engineering, and manufacturing equipment and systems for process plants, focusing mainly on the chemical and petrochemical industries. Kilburn is a leader in drying systems for solids, liquids, and gases and provides complete solutions for various sectors, including tea, fertilisers, carbon black, soda ash, pharmaceuticals, dyes, pigments, and speciality chemicals.

On August 22, 2024, the share price of Kilburn Engineering Ltd opened at ₹492.00, touching the day’s low of ₹475.00 as of 10:12 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.