Leading Russian pump manufacturer, HMS Group, has entered into a share subscription agreement to buy a controlling stake in Bobruisk Machine Building Plant in Belarus.
The acquisition will see HMS Group purchase 100% of newly issued shares for $9.6 million, equal to 57% of a share capital of Bobruisk Machine Building Plant – one of the largest manufacturer of specialist centrifugal pumps in the CIS. The transaction will be fully financed with available debt capacity, with all funds invested in the Plant to be used for development of new product lines and purchase of new equipment. HMS Group is acquiring the Plant with the authorization of the Belarusian government, and is considered to be a strategic investor. The acquisition is expected to be closed in autumn 2011.
The transaction will be completed after the Bobruisk Machine Building Plant shareholders meeting, and approval of the public offering, as well as upon state registration by the Republic of Belarus.
Artem Molchanov, Managing Director of HMS Group, says the Plant will complement the existing business of HMS Group and increase the groups brand portfolio.
“We continue our development in accordance with the strategy, presented during the IPO. With the intended acquisition, taking into account our marketing and RD capabilities, HMS Group will be able to substantially increase revenues of the Plant, to broaden our company’s product portfolio, and to provide our clients with more integrated solutions in oil refining and petrochemicals. Overall, the transaction is a great fit with HMS Group. It will create value for customers, employees of both companies, and HMS Group’s shareholders.”