HMS Group announced that it has completed an acquisition of KazanKompressorMash (“KKM”), located in Kazan (Tatarstan, Russia), manufacturer of centrifugal and screw compressors in Russia.
The deal has been approved by the Federal Antimonopoly Service.
Artem Molchanov, Managing Director (CEO) of HMS Group commented: “This transaction is a great fit with HMS Group and well-aligned with our strategy. We have a unique expertise of successful execution of the large-scale projects with pump-based integrated solutions. With strong and renowned product portfolio of compressors, mission critical unit in all technological processes with gas transportation and processing involved, we will be able to take a similar approach and focus on compressor-based integrated solutions on the markets that we understand well. Given the similar sale channels, procurement and production systems in pumps and compressors, I believe the integration of KKM will lead to realization of the implied synergies. Efficiency growth and business expansion in gas equipment market will help us to create additional value for our shareholders”.
HMS Group paid total cash of RUB 5.5 billion ($168 million) for 77.8% of voting shares (74.47% of share capital) of KKM. The transaction was financed with Rub 3 bn of bond issue with 3-year maturity, and Rub 2.5 bn of bank loans.
For the FY2011, in accordance with RAS, KKM had revenues of Rub cca 2.8 billion ($85 million). The company had low outstanding debt of Rub 220 million as of the end of 2011. HMS will consolidate KKM financials into HMS Group IFRS reporting starting from July 1, 2012.