Mumbai: Mumbai-based machine tool and engineering company Batliboi Ltd has acquired Canadian firm Quickmill Inc to leverage on its distribution network and research and development facilities for an expansion into the North American market

The 100 per cent equity acquisition is estimated to cost around Rs22 crore and is the first foray by Batliboi into the mergers and acquisition space.

Ontario-based machine tool company Quickmill is a leading designer and manufacturer of a wide range of large area machining centres for customers internationally in heat exchangers, machinery equipment, aerospace, dies and moulds, bridge building machinery and automotive sectors with annual sales of around Rs52 crore.

"With the acquisition, both the companies would be able to use each other''s distribution networks and it will specially help Batliboi to establish its presence in North America where Quickmill enjoys around 75 per cent market share in the heat exchanger segment," Batliboi Ltd chairman and managing director Nirmal Bhogilal said.

"We will use Quickmill''s distribution network in North America, utilise its strong R&D capabilities and in turn, detailed engineering for Quickmill''s machinery equipment, heat exchangers, aerospace dies and moulds, bridge building machinery and others could be done in India," he said, adding the company is keen to extend its reach to European market as well.

"Nothing specific is in the pipeline as off now, but now the market is more mature and M&As have become acceptable, we would definitely look at Europe as market in future," Bhogilal said.

With a gross turnover of Rs300 crore, Batliboi is a leading player in machine tools, textile engineering and air conditioning and refrigeration in India.

Batliboi primarily manufactures machine tools, specialised machines, textile air engineering machines and air conditioners at its Surat and Bangalore facilities. The company''s clients include textile manufacturers, automobile manufacturers like TVS, Honda, Mahindra and Mahindra and power makers like BHEL besides hotels, which use its air conditioners and refrigerators.