GMM Pfaudler (505255) Acquisition presentation summary

Acquisition terms

• Brazilian subsidiary to acquire 100% of SEMCO Tecnologia em Processos Ltda. for USD 18.5 mn (~INR 158 cr), on a cash- and debt-free basis; funded through internal accruals and debt.

• Deal aims to strengthen mixing technologies and expand access to Brazil and South America.

SEMCO profile

• Founded in 1953; Brazilian market leader with 40+ years of industrial mixing expertise and 30,000+ installed equipment units in Brazil and abroad.

• Offers agitators, mixers, reactors, attrition cells and ore pulp conditioners, supported by design, simulation and CFD capabilities.

• Asset-light model with outsourced manufacturing; 80 employees across sales, design, engineering, supply chain, project management and quality; spares and service are nearly 25% of revenue.

• Serves mining, metals and minerals, renewable fuels, water and wastewater, chemicals and petrochemicals, among other industries.

Strategic rationale and expected scale

• Acquisition adds technical know-how, simulation and design capabilities; expected operational synergies with Pfaudler Brazil and broader product access for SEMCO.

• Post-acquisition mixing business expected to reach USD 60 mn (~INR 513 cr) in revenue and USD 8 mn (~INR 68 cr) in EBITDA; EBITDA margin anticipated to remain in line with the existing mixing business.

• Strong order book and healthy opportunity pipeline; end markets include traditional minerals, renewable fuels and water and wastewater treatment.

• SEMCO can use the global sales and manufacturing network to scale exports, while its local sales network can support cross-selling in South America.