Mumbai: Paramount Communications, cabling solutions provider has adopted UK-based AEI Cables for $26.5 million, to fortify its product range for core divisions and ease growth in worldwide markets.

Sanjay Aggarwal, Paramount Communications Chairman and CEO said, “One of the key reasons for the acquisition is to access the product development and technical know-how of AEI Cables, in defence sector. Paramount would like to take this product portfolio to India and other markets it operates.”

The acquirement would make Paramount Communications the biggest listed Indian company in the cable industry with annual proceeds of more than Rs 1,100 crore.

The deal would also toughen its (Paramount Communications) product range for infrastructure segments including mining and power, railways, and defence in India and the United Kingdom. Additionally it would diversify its base in worldwide markets to as far as Middle East, Far East and Africa.

The company funded the acquisition through bank loans and partially through income from its convertible bonds issue.

AEI Cables is a wholly-owned subsidiary of international electronic sensors and components group, IT Electronics Plc. It had an annual turnover of about Rs 533 crore.