Sellwin Traders Forges US Foothold with Strategic 60% Acquisition of Shivam Contracting

In a significant strategic move poised to redefine its growth trajectory, Sellwin Traders Ltd, an India-based entity listed on the Bombay Stock Exchange, has announced its intent to acquire a substantial 60% majority stake in the US-based Shivam Contracting LLC. This pivotal acquisition, confirmed through a filing with the exchanges, signals Sellwin Traders' ambitious foray into the lucrative North American market, diversifying its operational footprint and unlocking new avenues for expansion.

Shivam Contracting LLC, a well-established player in the United States, specializes in a comprehensive range of general contracting services.

Its expertise spans construction, remodelling, and infrastructure development, catering to both residential and commercial clients. The company’s strong local presence and proven track record make it an attractive partner for Sellwin Traders looking to establish a robust presence across the Atlantic.

The motivation behind Sellwin Traders' latest venture is multifaceted.

This strategic acquisition is designed to significantly expand the company's existing business activities, pushing its boundaries beyond its current operational scope. More importantly, it marks a deliberate and decisive step towards diversification, allowing Sellwin to tap into the high-growth US construction and contracting sector.

This entry into the North American market is expected to bolster the company's revenue streams and enhance its competitive edge on a global scale.

Financial disclosures highlight Shivam Contracting's robust performance. The US-based firm reported a commendable turnover of $11.72 million for the financial year ended March 31, 2023.

This follows strong prior-year performances, with turnovers of $8.84 million in FY22 and $6.98 million in FY21, underscoring its consistent growth and operational stability within the American market.

The acquisition, which will be executed for a cash consideration, received the green light from Sellwin Traders' Board of Directors.

The completion of this transformative transaction is anticipated on or before July 31, 2024, subject to the fulfillment of customary closing conditions. This timeline positions Sellwin Traders to rapidly integrate Shivam Contracting into its global operations and capitalize on immediate market opportunities.

This strategic alliance is more than just an acquisition; it represents a foundational step for Sellwin Traders to build a formidable international presence.

By leveraging Shivam Contracting’s established expertise and market access, Sellwin is well-positioned to capitalize on the robust demand within the US construction sector, paving the way for sustained growth and value creation for its shareholders.