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Kilburn Engineering announces acquisition of Monga Strayfield for Rs 123 crore

Manufacturing and Engineering

Business Honor
21 August, 2024

Kilburn Engineering announces acquisition of Monga Strayfield Pvt Ltd for Rs 123 crore to expand portfolio.

Kilburn Engineering, the company, has announced its proposal to acquire Monga Strayfield Pvt Ltd, a well-known producer of radio frequency dryers and heating solutions, with the total consideration amounting to as high as Rs 123 crore. This strategic move is proposed to be an effort at building a synergistic partnership that would enhance Kilburn's portfolio and allow for extensive reach across almost all industries.

Monga Strayfield, established in the year 1968, offers over fifty years of experience in radio frequency drying and heating solutions, meeting the needs of the sheet metal fabrication industry. Considering that it already has a strong market footprint in both markets in the US and Europe, this would be the right addition to Kilburn.

As one Ranjit Lala, Kilburn Engineering Ltd MD, described the transaction, "This acquisition is a complete addition to our services and hence is going to expand us to satisfy customers in enhanced means." Such a purchase was destined to support the company for making its various drying and heating arrangements and equipment of utility in vast industries.

According to Director Amritanshu Khaitan of Kilburn Engineering, "This acquisition not only adds a new vertical for Kilburn but also is accretive in terms of shareholder value, increasing the overall profitability of the company as Monga Strayfield operates on high margins." He further elaborated that this deal will enable Kilburn to be positioned as a world-class manufacturer of dryers and heating solutions by enhancing its manufacturing capabilities to fulfill the increasing demand.

During FY24, the total revenue for Monga Strayfield stood at Rs 72.90 crore, with profit after tax of Rs 15.41 crore and closing cash balance of Rs 33.28 crore. The company's financials were, therefore, robust. The acquisition will make a considerable impact on the growth strategy of Kilburn and be an integral part of its long-term success.