Standex Buys Out Narayan Powertech India Stake for $64M
Standex International snaps up the remaining 9.9% of India's Narayan Powertech, paying $64M to take full ownership of the joint venture.
Standex International just wrote a pretty significant check. The industrial manufacturer has acquired the remaining 9.9% stake in India-based Narayan Powertech for $64 million, bringing its ownership of the company to 100%. If you're keeping score at home, that's a full buyout of a business it already largely controlled.
Narayan Powertech operates in India's power sector, and Standex had previously held the majority of the company before this deal closed out the remaining minority interest. By consolidating full ownership, Standex eliminates any shared decision-making and gets to pocket all future earnings from the venture — no splitting required.
Read more U.S. Physical Therapy Acquires Majority Stake in PT Practice →
For investors watching Standex, this move signals the company is doubling down on its India exposure at a time when the country's energy infrastructure is growing fast. Full ownership also tends to simplify accounting and give management cleaner control over strategy, which Wall Street generally likes to see.
The $64 million price tag for just under 10% of a company implies a pretty healthy overall valuation for Narayan Powertech. Whether that price is a bargain or a premium depends heavily on how India's power sector performs going forward — and right now, the growth runway there looks fairly compelling.
Continue reading at SeekingAlpha.
