Elgi Equipments on Wednesday announced that it has completely acquired Australia-based FR Pulford & Son, along with its wholly-owned subsidiary Advanced Air Compressors, doing business as Pulford Air and Gas.
Elgi Equipments, one of the leading air-compressor manufacturers, on Wednesday announced that it has completely acquired Australia-based FR Pulford & Son, along with its wholly-owned subsidiary Adva-nced Air Compressors, doing business as Pulford Air and Gas. The total acquisition cost is approximately A$11.04 million (upfront cash consideration). Elgi will gain 100% of the shareholding and control of Pulford.
Elgi said that it is currently on a business mission of becoming a leading player in the global air-compressor business by 2027. This strategic acquisition is a significant step by the company in Australia to expand its footprint in the whole region.
Through this acquisition, Elgi gains access to a national pool of customers to grow sales and service in Australia. Pulford is one of Australia’s largest distributors of industrial compressors. It has been in the business for nearly 100 years. The firm reported an annual turnover of A$14.5 million in 2015-16, A$15.8 million in 2016-17 and A$18 million in 2017-18.
Elgi Equipments MD Jairam Varadaraj told FE: “Pulford has been our year-long partner, which distributes and sells our products in that region. During this period, we have developed a good relationship and hence decided to acquire completely. Pulford has been selling products sourced from European countries for long till we became partners one year ago.” Varadaraj added: “Today is a momentous day in Elgi’s and Pulford’s history. It is the integration of two customer-centric organisations with the intent of gaining a leadership position in the Australian compressed air market.”