Assystem S A has announced the completion of its acquisition of 99% of the share capital of STUP Consultants, a full-service engineering project delivery consultancy headquartered in Mumbai with operations all over India. The price of the stake is between €21 and €22 million, which takes into account cash net of debt estimated to be some €1 million and is subject to typical net cash/debt and working capital adjustments. STUP generates some €20 million in annual revenue and employs 1,100 people across India.
With this acquisition, Assystem aims to Optimize its globally recognized nuclear engineering services by capitalizing on STUP’s strong existing Indian base to support various players in the nuclear power plant construction program launched by the Government of India. The company plans to additionally set up a nuclear engineering knowledge centre in India with the objective of becoming one of leading players in the sector in the country; Leverage STUP’s team and networks to accelerate growth in the infrastructure engineering market in India. The new entity will seek to maximize new opportunities and prospects arising from India’s National Infrastructure Pipeline programme; Drive international development and further strengthen its skills and expertise in non-nuclear infrastructure, particularly in Transportation - Roads, highways and expressways, airports and aviation, metros & railways, offshore and coastal engineering, etc, Territorial and urban development - Smart cities, environmental engineering, water & agriculture development, etc, Industrial complex buildings – Architecture, defence, industry, health and hospitals, Non-nuclear energy – New uses of energy (renewables, hydrogen), grid, and power.
The infrastructure sector has become one of the biggest focus areas for the Government of India. An amount of Rs. 111 lakh crore (US$ 1.4 trillion) has been allocated under the National Infrastructure Pipeline for FY 2019-25 whilst the energy sector is expected to account for 24% of capital expenditure over FY 2019-25. Assystem is determined to tap, through STUP, into this ambition and contribute to the country’s progress by accelerating energy transition through the rapid development of new infrastructure solutions, and increasing access to safe, stable, and carbon-free energy sources for citizens and economic players.
“STUP brings to Assystem proven capabilities and a strong human resource network with deep expertise, demonstrated in their best-in-class solutions for the Indian market,” says Ashish Tandon, Managing Director, STUP. “Combining this with Assystem’s rich portfolio of next-gen engineering offerings and long-standing global industry presence gives us ample opportunity to increasingly secure fruitful prospects, broaden our access to the energy and infrastructure market, and take a leading position in our customers’ development journey in India.”
Philippe Chevallier, CFO & Deputy CEO, Assystem and Chairman, STUP, and Stéphane Aubarbier, COO, Assystem, said, “We are extremely happy that STUP with its very experienced team is joining the Assystem group. We concur with Ashish that the combination of the capabilities of STUP & Assystem and the synergy created, will enable us to very efficiently serve the Indian energy and infrastructure space and Assystem’s international projects.”