Crompton Greaves announced the acquisition of the transformer businesses owned by the Pauwels Group of Belgium for Euro 32.1 million (Rs.180 crore) on 25 February 2005. The acquired operations are located across Belgium, Ireland, Canada, the US and Indonesia.

The company intends to finance the acquisition both from internal accruals and borrowings. The deal would include Euro 2.1 million equity component and Euro 30 million as debt.

The loss-making Pauwel group is engaged in the manufacture of power and distribution transformers and has production bases Belgium, Ireland, Canada, USA and Indonesia.

The acquisition is expected to add about Rs.1,600 crore to Crompton Greaves' total revenue, taking it to Rs.4,000 crore. Crompton Greaves would require a further investment of Euro 7.5 million (Rs.42 crore) to strengthen the operations of the Pauwels Group.