Bloomberg News

Power Machines Says EMAlliance Buy to Boost Sales One-Third

February 15, 2012

(Updates with last year’s sales in second paragraph.)

Feb. 14 (Bloomberg) -- OAO Power Machines, Russian billionaire Alexey Mordashov’s turbine producer, said the purchase of engineering company EMAlliance will boost sales by as much as a third.

The value of the deal will be announced shortly, Chief Executive Officer Igor Kostin told reporters today in Moscow. Power Machines had estimated sales of about $1.6 billion last year. EMAlliance makes boilers for power stations.

Power Machines, based in St. Petersburg, is benefiting from rising demand for power equipment in Russia and emerging markets. The company increased sales to OAO Rushydro after a 2009 dam disaster at a Siberian hydropower plant, and also counts state-owned Rosatom Corp. among its customers.

Steelmaking billionaire Mordashov bought Siemens AG’s 25 percent in Power Machines last year and received antitrust approval to acquire the remaining shares. The company was delisted from the Micex exchange and minority shareholders are expecting a mandatory offer after Mordashov boosted his holding to 95 percent.

Mordashov will make them an offer once he receives a bank guarantee for the full amount of the buyout, Kostin said.

Power Machines may announce further acquisitions in the near future and doesn’t rule out a London share sale in the future, according to Kostin. The company is seeking joint ventures in Brazil and India, he said.

--Editor: Stephen Cunningham, Torrey Clark.

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: John Viljoen at jviljoen@bloomberg.net


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