Mahindra and Mahindra (M&M) has acquired 75.1 per cent equity stake in a Turkish farm equipment company for $19 million, a regulatory filing by the company said here on Friday.
The transaction into Hisarlar Makina Sanayi ve Ticaret Anonim Sirketi (Hisarlar) was expected to close by April 2017.
“The association will help in growing the farm equipment business in Turkey and Europe,” the filing with the BSE said.
The balance shareholding will be with European Bank of Reconstruction and Development (18.7 per cent) and the founding Turker family (6.2 per cent).
Further, as part of the transaction, Darby Converging Europe Fund III would exit its investment.
“Our strategy going forward is to globalise aggressively and also expand our portfolio to include various new categories of farm machinery. This acquisition is an important milestone in our globalisation journey,” said Pawan Goenka, Managing Director, M&M.
“Hisarlar is a market leader with 45 per cent in soil preparation equipment in Turkey. The acquisition of Hisarlar will enable Mahindra to expand its footprint in Turkey and Europe,
“Making this entity a global manufacturing base for various farm implements and tractor cabins,” said Rajesh Jejurikar, President and Chief Executive, Farm Equipment and Two Wheeler, M&M.