April 2008
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Kitply set for makeover after PE fund infusion

A change of management is underway at plywood firm Kitply Industries which owns the popular brand Kitply with Hong Kong-based ADM Capital infusing Rs 120 crore for restructuring the company. India Debt Management, a group company of ADM, has infused capital in Kitply Industries, which will be used partly to repay the lenders and partly to revive its operations. The proposal to bring in a private equity (PE) player ADM on its board was recently cleared by the board of Kitply Industries and its lenders. The company had outstanding loans of Rs 500 crore to about 15 lenders. Bankers said that the company ran into trouble owing to an earlier slowdown in the economy and a family dispute over management control. The restructuring of Kitply was referred two years ago to the corporate debt restructuring (CDR) forum — a platform where lenders get together to revolve stressed loans. The restructuring package envisages Rs 75-80 crore being used to repay the lenders while the balance Rs 40-45 will be infused into the company. While some of the lenders have already sold their loans to Asset Restructuring Company of India (Arcil), other lenders like ICICI Bank, SBI and IFCI would continue as lenders. [...]

Sanmar group acquires U.S. firm

N. Sankar-led Sanmar Group, an integrated industrial, shipping and engineering group, has acquired Houston-headquartered Matrix Metals LLC for an undisclosed sum. Matrix Metals operates one of the largest speciality steel casting businesses in North America. It is a portfolio company of Jefferies Capitol Partners, a private equity investment firm with more than $680 million in funds under management. The deal is expected to result in the creation of a leading specialty steel casting group in the global arena. Matrix Metals has foundries in Keokuk (Iowa), Richmond (Texas) and San Juan del Rio in Mexico. The three plants together have a combined capacity of 30,000 tonnes a year. Matrix designs and pours castings of all sizes up to 8,500 pounds. It is focussed on meeting the casting needs in the flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors. It employs around 1,300 people across these three locations. According to a release from the Sanmar group, Matrix Metals closed the last financial year with sales of $157 million, up 10 per cent over 2006. [...]

Accentia Tech acquires 51% sake in Oak Technologies

Mumbai-based, Accentia Technologies Ltd (ATL) has informed that the company has acquired 51% stake in Oak Technologies Inc, USA in an all cash deal. However, the value of the deal was not disclosed by the company. ATL provides business process management solutions for the healthcare, financial, and insurance sectors. It offers various business process outsource management (BPOM) solutions, which primarily include professional transcription to medical providers and non-medical companies in the United States and the United Kingdom. The company’s BPOM solutions also comprise medical billing and coding, insurance claim processing, and consultancy services. [...]

PEs` fund raising plan takes a knock

The diminishing appetite of investors is hurting the fund raising plans of the PE players. Corporates are also in a tight spot as the markets have turned unfavourable in terms of raising money. Said a source at the financial institution, “We are hoping to close the fund by June-end and there is a possibility of falling short by 15 per cent.” Since there is a turbulence in the global markets, some of the PE players are postponing their fund raising plans, while others are revising their original targets and extending closing dates for their funds. According to banking sources, ICICI group — which is planning to raise over $7 billion for its PE activities — said the entire process is being prolonged because of the market conditions. “The fund raising plans of PE firms will be dampened considering the current market conditions. There will be a temporary flip,” said P Harshavardhan, partner & director, Boston Consulting Group(India). According to industry estimates, the amount being raised by PE players is more than $12 billion this year. This figure, however, does not include real estate funds. [...]