Kirloskar Oil Engines Limited (KOEL) announced its board’s approval for the acquisition of the remaining 49% stake in Engines LPG, LLC, dba Wildcat Power Gen, USA. This strategic move, involving Kirloskar Americas Corporation, aims to consolidate 100% ownership. The transaction, valued at USD 0.15 million, is expected to enhance strategic decision-making, streamline governance, and bolster operational flexibility for North American expansion.
Strategic Acquisition to Consolidate Ownership
Kirloskar Oil Engines Limited (KOEL) has received board approval for a significant strategic acquisition. The company, through its wholly-owned subsidiary Kirloskar Americas Corporation (KAC), will acquire the outstanding 49% stake in Engines LPG, LLC, which operates as Wildcat Power Gen in the USA. This acquisition will lead to KAC holding 100% ownership of Engines LPG, making it a wholly-owned subsidiary of KAC and a step-down subsidiary of KOEL.
Transaction Details and Rationale
The transaction involves Kirloskar Americas Corporation acquiring the stake for a consideration of USD 31 per unit. The total cost for the 49% stake acquisition amounts to USD 0.15 million. This move is driven by the objective of consolidating ownership, enabling swifter strategic decision-making, and ensuring streamlined governance under KAC. It also facilitates seamless integration of R&D, technology, and global supply chain operations, providing significant operational flexibility to scale North American expansion efforts directly.
Target Entity and Business Overview
Engines LPG, LLC, dba Wildcat Power Gen, is a U.S.-based manufacturer of genset original equipment, incorporated on August 30, 2013. Kirloskar Americas Corporation previously held a 51% controlling stake since November 29, 2023. Wildcat Power Gen operates as a specialized U.S. OEM, providing EPA-certified commercial and industrial generator sets (gensets) and behind-the-meter power solutions across North America. Its key segments include data centers, telecom, microgrids, emergency services, and utilities. The company’s core product lines, Optiprime and Optiprime Hybrid Power Systems, range from 10 kW to 7.2 MW across Natural Gas and Diesel power.
Financial Snapshot of Target Entity
For the financial year FY25-26, Engines LPG, LLC reported a total income of USD 4.71 million (INR 44.9 Crore). The company’s financial projections indicate expected revenues of USD 0.36 million in FY2024, escalating to USD 2.64 million in FY2025, and further to USD 4.71 million in FY2026, primarily from its Aftermarket, Service & Manufacturing Operations. The acquisition is anticipated to be completed by September 30, 2026.
Source: BSE
