Blackstone to invest $65 million in MTAR
New York / Mumbai, November 07, 2007: The Blackstone Group today announced an investment of USD 65 million in the Hyderabad based MTAR Technologies Private Limited, subject to regulatory approval. MTAR is the leading precision engineering company in India and has been closely involved with Indian nuclear, space and defense programs for over 37 years. It manufactures precision machined parts for nuclear power reactors, and engine & structural components for aerospace and defense applications. Under the terms of the transaction, the funding will be a mix of primary and secondary equity. MTAR will continue to be led by the original founders – P. Ravindra Reddy, Satyanarayana Reddy and P. Jayaprakash Reddy – and the existing management team which has been instrumental in achieving strong growth and market leadership.
MTAR serves the needs of organizations like NPCIL (Nuclear Power Corporation of India Limited), ISRO (Indian Space Research Organization) and HAL (Hindustan Aeronautics Limited) which are driving key programs of national importance and is witnessing favorable industry dynamics in all sectors in which it operates – nuclear power, aerospace and defense. It is looking to expand its highly skilled workforce as it gears up to meet the challenges of achieving significant growth while innovating constantly.
Akhil Gupta, Chairman of Blackstone Advisors India Private Limited said: “MTAR is a sector leader with very unique skill-sets, capabilities and in-depth understanding of a very niche and high potential industry. We are very enthusiastic about this investment as we foresee a huge growth opportunity for MTAR both in domestic and global markets.”
Mr. Ravindra Reddy, Chairman, MTAR said: “Blackstone in India has an impeccable record in partnering with companies during their growth phase. This partnership is the key to our ambitious growth plans. In addition to helping us scale up our operations in terms of management expertise, global best practices & technology, this deal will also give us access to Blackstone’s global network.”
First Securities was the advisor for this transaction.
MTAR Technologies Private Limited is one of the leading precision manufacturing companies in India. The Hyderabad based company supplies precision engineered components for nuclear power, aerospace and defense applications within India. It also exports precision engineered components for aerospace applications.
The Blackstone Group
The Blackstone Group is a leading global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. The Blackstone Group also provides various financial advisory services, including mergers and acquisitions advisory, restructuring and reorganization advisory and fund placement service. Further information is available at www.blackstone.com