KEC International Agrees to Acquire SAE Towers Holdings for $95 Million

KEC International Ltd., India’s second-largest maker of electricity transmission towers, agreed to acquire U.S.-based SAE Towers Holdings LLC for $95 million to help the company win business in North and Latin America.

KEC gained 2.7 percent to 499.5 rupees in Mumbai at 11:46 a.m. after surging as much as 6.4 percent. The Mumbai-based company expects to complete the transaction by the end of this month, KEC said in a statement to the Bombay Stock Exchange.

The company, which reported a 31 percent decline in profit in the three months through June, wants to tap business in Latin America where economies such as Brazil are expanding 8.8 percent. The acquisition will help boost earnings in the year ending March 31, KEC said in the statement.

“SAE Towers has a significant presence in geographic areas which are of substantial interest to KEC,” Ramesh Chandak, managing director of KEC said in the statement. “We expect to leverage SAE Towers’ existing customer relations for KEC’s other business segments.”

To contact the reporter on this story: Hemal Savai in Mumbai at at hsavai@bloomberg.net.

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