Hayleys buys 75% in familyowned Fentons for Rs.722mn

The diversified conglomerate, Hayleys PLC acquired 75 percent stake in Fentons Limited, one of the leading electrical and mechanical engineering solutions provider for building systems and ICT infrastructure for a consideration of Rs.722 million.

Fentons has been valued at Rs.963 million, the company said in a disclosure made to the Colombo Stock Exchange stated.

“The management of Hayleys believes that there is a strong strategic fit between the two organizations and the acquisition will positively contribute to the Hayleys Group’s turnover and profitability considering the growing demand in the country’s infrastructure and support services sector,” the company said.

The deal is believed to have gone through for a total cash consideration and the top officials from both Hayleys PLC and Fentons Limited declined to comment. The 95 years old Fentons provides a broad spectrum of services in the electrical, electronic, telecommunication and Extra Low Voltage (ELV) engineering sphere, from system design to installation and commissioning for multiple industry verticals which includes banking and finance, leisure and tourism, information technology, manufacturing, healthcare, education, transportation and government sectors. Fentons’ corporate websites said it caters to over 6,000 customers at present. Hayleys provides similar line of solutions under its business segment, ‘industrial solutions’ and Fentons Limited is likely to be listed under this segment. A leading figure in the local construction sector, C.W. Abhayaratne functions as the Chairman of the Fentons while Chandev W. Abhayaratne functions as the Managing Director.