Tega Industries gets NCLT nod for acquisition of McNally Sayaji Engineering

Tega Industries Limited said that it has secured approval from the Indian National Company Law Tribunal (NCLT) for its acquisition of McNally Sayaji Engineering Limited (MSEL), a manufacturer of crushing, grinding, screening, material handling and mineral processing equipment.

According to Tega Industries, this is the company’s maiden acquisition in India and its fourth worldwide.

Tega Industries is involved in manufacturing ‘critical-to-operate’ consumables for the mineral processing, mining, and material handling industries.

The acquisition of McNally Sayaji Engineering is said to represent a major step to the longer-term portfolio expansion for Tega Industries. This broader portfolio is expected to improve the sustainability of the company, said Tega Industries, while adding that the acquisition is likely to close over the next couple of months.

The financing of the deal will be made via the optimal combination of debt and internal resources.

Tega Industries, which is looking to increase its offerings to increase its market share globally as well as in India, said that the acquisition is expected to boost the value of the company as well as its shareholders, with a focus on revenue growth and margin expansion possibilities in the long-term.

McNally Sayaji Engineering is anticipated to boost its global presence by leveraging Tega Industries’ market dominance and prominent customer relationships.

Mehul Mohanka — Tega Industries Managing Director and Group CEO said: “The global market for mining and mineral products is increasingly competitive, putting a premium on the need to moderate costs and enhance margins. The acquisition of MSEL represents a win-win proposition for Tega and its customers.

“The acquisition of a complementary business is expected to enhance our competitiveness on the one hand and strengthen customer service on the other. We believe that the acquisition will enhance value for all our stakeholders.

“In doing so, we expect to engineer flawless solutions which benefit our customers in terms of driving operational efficiency at a lower cost of ownership.”