Charter to weld Brazilian group to ESAB

5th Jul 2011 07:42

Charter International, the engineer currently resisting the advances of its larger rival Melrose, has been on the acquisition trail itself, acquiring a shareholding in a Brazilian gas apparatus manufacturer.Charter's welding, cutting and automation business ESAB is taking a 60% stake in Condor Equipamentos Industriais. This will help significantly expand ESAB's revenues, by selling Condor's products through ESAB's established distributor network and other sales channels in Brazil and other South American markets. ESAB had sales of £242.3m in South America in 2010."This acquisition is in line with our strategy of growing ESAB's presence in emerging markets, which are already responsible for around one-half of ESAB revenues," said Charter's chairman Lars Emilson. "We believe that South America provides one of the major growth opportunities in the worldwide welding market over the coming years and that Condor, as a market leading gas apparatus manufacturer in Brazil, will contribute to ESAB's continued growth in the region."Charter last week rejected a 780p-a-share approach from Melrose saying it "substantially undervalues" the company.