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Zetwerk buys Unimacts in $39M deal focused on US solar, wind energy customers

Contract manufacturing platform Zetwerk has bought US-based Unimacts. The deal is worth $39 million.

Zetwerk, a Bengaluru-based contract manufacturing platform, has announced its fourth acquisition with Lexington, Kentucky-based Unimacts.

According to Amrit Acharya, Co-founder and CEO of Zetwerk, the cash-and-equity transaction values Unimacts at $39 million. Apart from construction equipment and industrial items, Unimacts is a contract manufacturing and supply chain solutions firm that focuses on renewable energy.

Zetwerk anticipates the Unimacts purchase to help it acquire access to high-profile solar and wind-power clients in the United States, the company’s largest foreign market.

Amrit said, “International markets account for almost 10-12% of our income, with the United States being the largest. The goal of the purchase is to be closer to clients in the United States and to develop a leadership team in the nation,”, adding that solar accounted for over 80% of demand for Zetwerk’s renewable energy sector manufacturing capabilities.

Unimacts’ leadership staff, including CEO Matthew Arnold, CFO Andrew Woglom, and COO Alan Hays, will join Zetwerk alongside the rest of the 200-person team.

This brings Zetwerk’s total global workforce count to over 1,900.

Unimacts’ Matthew stated in a Zetwerk release, “Partnering with Zetwerk will allow us to accelerate our growth and worldwide reach, as well as providing more complete solutions to our clients.”

Zetwerk announced earlier this year the acquisition of three firms for a total of Rs 100 crore.

Aerospace and defense producer Pinaka Aerospace Solutions, oil and gas sector maker SharpTanks, and Wheels India’s Wardha fabrication business, which provides crucial manufactured components for the power, roads, and railroads industries, were among the purchases. In May, Zetwerk also opened a facility in Noida to produce wearable, IoT, and hearable gadgets.

“When there is no supply in the nation, we are willing to catalyze the process and own that component of the supply chain. We cannot do this in all major markets,” Amrit said.

According to the firm, Zetwerk has been EBITDA, or operationally profitable, for over 15 months after being valued at $2.7 billion in a fundraising round headed by Greenoaks Capital in December 2021. Amrit, Srinath Ramakkrushnan, Vishal Chaudhary, and Rahul Sharma started it in 2018.

According to Amrit, the firm is on target to conclude FY 2023 with $1 billion in gross merchandise value, a proxy for total value of items sold, up from $770 million in FY 2022. The corporation recorded operating sales of $607 million, for fiscal year 2022.

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