The United Heavy Machinery-Power Machines Group has signed an agreement today on buying three subsidiaries of Skoda Holding (the Czech Republic), the press service of the machine-building concern Power Machines reported. The deal covers Skoda JS (Skoda Jaderne Strojirenstvi) and the consortium Skoda Steel (Hute and Kovрrny).
Skoda JS designs, manufactures and services machinery for the nuclear energy industry, the petrochemical and oil refining industries. Skoda Kovarny is the world leader in the production of parts for four-cycle diesel engines. Skoda Hute makes steel and cast iron castings. The total volume of sales of the three companies reached about $200m in 2003.
Upon completion of the deal, Skoda JS will be integrated into the department of United Heavy Machinery-Power Machines dealing with equipment for the nuclear energy industry, and Skoda Steel will be a part of the metal department of the group.
This acquisition is expected to give the company access to the East European market of servicing and modernization of equipment for nuclear power plants.
As reported earlier, United Heavy Machinery and the Power Machines concern announced a merger of equals in December 2003.