Action Construction Equipment (ACE), the material handling and construction equipment manufacturer plans to acquire two companies, one in India and another in China.

The acquisition deals are estimated to cost Rs 120 crore. It will help ACE to expand its product portfolio. However, ACE has not disclosed the names of the target companies. The acquisition of Chinese company will give ACE the product that it already manufactures but with better technology and at a lower cost. The acquisition of Chinese company worth Rs 40 crore will be concluded by October 2011.

ACE will invest around Rs 80 crore for about 70 per cent stake offered by two of the current shareholders of the National Capital Region located company. The company plans to raise around Rs 25 crore of debt for the acquisitions. Also, the company has lined up investments worth Rs 40 crore for expanding its current capacity in FY12.