Evaluation criteria:

Rank Weighted Score

Weightag
Criteria Titagar Texmac Schaltba Titagar Texmac
e
h o u h o Schaltbau
Industry and position in
it 10% 2 1 3 0.2 0.1 0.3
Resources and strategic
capabilities 20% 2 3 1 0.4 0.6 0.2
Size of the business 5% 1 2 3 0.05 0.1 0.15
Profitability 20% 1 2 3 0.2 0.4 0.6
Risk exposure 5% 2 1 3 0.1 0.05 0.15
Asset type 10% 3 2 1 0.3 0.2 0.1
Management quality 10% 2 3 1 0.2 0.3 0.1
Prospective control 5% 1 2 3 0.05 0.1 0.15
Organisational fit 15% 1 2 3 0.15 0.3 0.45
Priority 1 2 3 1.65 2.15 2.2

Target companies and Acquisition Rationale

 Titagarh Wagons – “A leader in manufacture of heavy engineering equipment,
driven by commitment to be a world-class service provider for the infrastructure
sector, TITAGARH Group serves products that meet the customers’ requirement and
enhance their quality of business on a long term basis. Values espoused by
TITAGARH are focused on bringing full satisfaction to all the stakeholders with the
best interest of society being at the core”.
Acquiring Titagarh Wagons would enable Alstorm to penetrate the high growth
mobility market of India. The small company size and huge growth potential makes it
a lucrative target to drive growth for Alstorm’s shareholders.

 Texmaco Rail & Engineering Ltd. – “Texmaco is committed to create new business
models through forming strategic alliances and focusing on wealth creation by using
knowledge skills. We are seized of the opportunities and threats and preparing
ourselves to steer our way forward through a challenging environment. We aspire to
align with the global leaders and boost growth across the markets”.
Texmaco is another company that can open the doors of the lucrative indian market
for Alstorm. The size of Texmaco is tad bigger than Titagarh, hence large capital
requirement to fund the acquisition. The Hi- precision, Hi-tech manufacturing
capability of Texmaco would act as a catalyst in driving the growth for Alstorm.

 Schaltbau – “Schaltbau GmbH develops and manufactures electromechanical

components and innovative driver’s desks for railways and industry. Since 1929, the
company has been responsible for the safe operation of rail services, and today it
protects systems in industrial applications for renewable energy, e-mobility and
automation”.
Schaltbau is a well-diversified European company that provides wide range of
mobility solutions. The acquisition of Schaltbau would not only enable Alstorm to
consolidate its position in the European market but would also allow it to diversify its
portfolio of products and services offered.