Amtek Auto, one of India's largest integrated component manufacturers, is set to acquire REGE Holding GmBH, a German auto component firm, for an undisclosed amount.
This is Amtek's second acquisition in less than a month. REGE recorded revenues of Euro 200 million in 2014.
REGE's operations from three plants, two in Germany and one in Romania, employ close to 1,400 employees. REGE makes connecting rods, crankcases, cylinder heads, gear housings and valve bodies and has blue-chip OEM customers, including Continental, General Motors, Kia Motors and Volkswagen.
A senior official at Amtek said the deal will provide an enhanced machining platform to integrate with the Amtek group's global forgings and castings business.
ET had in November reported that Amtek is set to make three overseas acquisitions.
In April, Amtek signed a Share Purchase Agreement with Japanbased Asahi Tec Corporation to acquire its various group companies which are engaged in the business of Iron Casting, Forging and Machining.
Amtek has been growing through the inorganic route. REGE would be Amtek's 22nd acquisition since it charted out its growth strategy through acquisitions.
"The transaction provides us access to significant machining capabilities in a highly synergistic product range and strengthen our manufacturing of cylinder heads and housings outside India," said John Flintham, vice chairman of Amtek Auto.
For Amtek, this transaction offers further "non-auto sector diversification" for the Amtek Group.