Kirloskar Electric Company (KEC), one of India's leading manufacturers of electrical and power equipment, has informed that its board of directors has finally approved acquisition of about 95% stake in German manufacturing company, Lloyd Dynamowerke & Co. KG (LDW) and acquisition of 100% holding in Lloyd Beteiligungs from CMP Fonds I.

LDW, a former member of AEG, manufactures electrical rotating machines and drive systems. Its clientele includes Siemens, Alsthom, Thyssen Krupp and Gottwald. The acquisition cost is, however, not available.

For the year ended December 31, 2007, LDW's revenues were $78 million. It is a profitable entity with positive operating cash flows and growth trends, a company press release said. 

In 2006, the private equity company, CMP Fonds I GmbH from Berlin, Germany had acquired the majority ownership of LDW and provided additional capital to the manufacturer of motors, generators and drive systems.

The acquisition which is estimated at around 50 million euro ($70 million), will be carried through a newly-floated subsidiary of the company- Kirsons B.V. - in the Netherlands.

Bangalore-based KEC manufactures products ranging from A/C motors, generators, DG sets, switchgear equipment, transformers and traction equipment. It has factories located in Bangalore, Mysore, Hubli, Pune and Tumkur. The company has over 30 sales offices in India and offices in Singapore, Malaysia and the UAE.

In April this year, KEC merged its 76.34 per cent-owned subsidiary, Kaytee Switchgear, with itself.