India's International Acquisition Spree Continues, Is Ducati Next? 1

Would the Royal Enfield-Ducati deal add to India’s international acquisitions list?

India-based Royal Enfield parent Eicher Motors has made a bid to acquire Italian iconic motorcycle brand Ducati for $1.8 billion. The acquisition would mark Royal Enfield’s (RE) entry into the superbike (800cc-1200cc) segment, along with strengthening its global presence. Currently, RE is a dominant player in the mid-sized (150cc-700cc) segment. The Royal Enfield – Ducati deal, if completed, would add to a string of international acquisitions that Indian companies (EPI) (INDA) (INDY) have made globally (ACWI) (VTI) of late, the four most recent of them being:

Millitoons Entertainment acquired Kirksville Hospitality

On September 11, motion picture & services firm Millitoons Entertainment’s (MIENT.BO) wholly owned subsidiary in the US, Mient Hospitality LLC, acquired a 100% stake in US-based hotels & motels company, Kirksville Hospitality Inc. which runs a hotel under the franchise of well-established brand Holiday Inn. The all-cash acquisition cost Millitoons Entertainment $4.83 million.

Millitoons Entertainment trades on the Bombay Stock Exchange under the ticker MIENT. The stock is up 162.9% over the past year (as of September 26). Since the announcement of the acquisition on September 11, the stock has risen 7.6%.

HCL Technologies acquired ETL Factory

On September 5, India’s fourth largest software services firm HCL Technologies (HCLTECH.NS) announced that it acquired UK-based computer software company, ETL Factory Ltd (dba Datawave) for $9.11 million in an all-cash deal, to strengthen its data migration and integration services.

HCL Technologies trades on the National Stock Exchange of India under the ticker HCLTECH. The stock is up 10.2% over the past year (as of September 26). Since the acquisition was announced on September 5, the stock has risen 2.2%. The stock currently trades at a P/E of 14.5. The company has an operating margin of 20.1% and an EPS growth rate of 16%.

Strides Shasun acquired Amneal Pharmaceuticals

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On August 31, generic drugs company Strides Shasun Ltd. (STAR.BO) announced that its subsidiary Arrow Pharmaceuticals has acquired the Australian operations of drug maker Amneal Pharmaceuticals LLC for a total consideration of $13.5 million (17 million AUD). With the acquisition, Strides Shasun intends to accelerate Arrow’s market reach and eventually attain a leadership position in the Australian generics market.

Strides Shasun trades on the Bombay Stock Exchange under the ticker STAR. The stock is down 13.7% over the past year (as of September 26). Since the acquisition was announced on September 5, the stock is down -0.1%. The stock currently trades at a P/E of 18.1. The company has an operating margin of 13.1% and an EPS growth rate of 333.8% over the past year.

Roha Dyechem acquired New Foods Industry

On August 30, the diversified chemicals company, Roha Dyechem Pvt. Ltd. completed its third acquisition for the year, by acquiring Italy-based New Foods Industry S.p.A, an expert in dry ingredients for the food and beverage industries. With the acquisition, Roha intends to consolidate its position in the color sector with synergistic innovative ingredients and to leverage abundant opportunities in natural market segments.

Earlier in January, Roha acquired Italy-based Essential SRL, a leading manufacturer of plant and fruits based natural coloring and flavoring ingredients. In July, Roha acquired the color division of Egypt-based Delta Aromatics, a step towards it Middle East expansion.

Roha Dyechem is a private company, so stock information for the company is not available.

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