Kilburn Engineering Acquires M E Energy: Thermal Portfolio Expansion

Kolkata, Feb 21 (PTI) Kilburn Engineering Ltd (KEL) on Wednesday announced that it has acquired M E Energy Private Ltd, a leading entity in waste heat recovery and reutilisation systems, for an aggregate consideration of Rs 98.70 crore.

The company said the acquisition was a strategic move to become a comprehensive solution provider in the thermal engineering space.

M E Energy, with a revenue of Rs 44.70 crore in 2022-23, brings valuable expertise in waste heat recovery (WHR) solutions, complementing KEL's existing portfolio of drying systems, a company statement said.

The acquisition for an aggregate consideration of Rs 98.70 crore, including a cash payout of Rs 75.46 crore, marks a significant milestone in the company's growth journey, it said.

KEL Director Amritanshu Khaitan said, "This acquisition marks a significant stride in our strategic growth trajectory. M E Energy's expertise strengthens our commitment to innovation and service expansion. We are confident that this collaboration will not only enhance our competitive edge but also deliver sustainable value to our shareholders."

KEL Managing Director Ranjit Lala emphasized on the synergies facilitated by the acquisition.

"This will augment organisational prowess, as ME Energy specialises in the production of thermal engineering and heat recovery systems, a perfect complement to Kilburn Engineering's existing drying systems. This synergy will open doors to expanded sales opportunities by tapping into the existing client base of both entities," he said.

For the nine months ended December 2023, KEL generated a revenue of Rs 207 crore and a net profit of Rs 27 crore.