NEWS

Amtek Auto set to acquire three foreign firms in Germany, Southeast Asia

Tuesday, Nov 25, 2014

Auto component maker Amtek Auto is close to acquiring three foreign companies that have a combined annual turnover of over Rs 2,000 crore, according to people close to the development. Delhi-based Amtek Auto, the flagship of the $2.7-billion Amtek Group, will make the acquisition through a wholly-owned Singapore subsidiary, these people said.

Two of these companies are based out of Germany while the third is headquartered in Southeast Asia. The names of the companies could not be confirmed till the time of going to the press. Amtek did not respond to an email query on its acquisition plans and the targeted companies. John Flintham, global CEO at Amtek Group, told ET: "Amtek Group is always looking for acquisitions as part of its high growth strategy. We are always evaluating plans to have trans-continental transactions that will not only reinforce our European manufacturing platform, but also expand to new attractive territories like Southeast Asia."

One of the people quoted earlier said the intended acquisitions will allow Amtek to synergise its core forging, casting and machining businesses, besides helping it diversify into energy, power, industrial automation and telecom. "Amtek would not just strengthen its auto component businesses with these acquisitions, but also diversify into fast-growing non-auto areas like energy & power, marine, medical industrial automation systems and telecommunications," this person said.

"The acquisitions would also give Amtek a foothold in the Asean region that has been growing steadily."

According to details sourced by ET, the target companies have six manufacturing bases across Europe and Southeast Asia. These are tier-I tier-III entities that supply to several blue chip manufacturers. Another person close to these development said the acquisitions will reinforce Amtek Group's position after its successful integration of recentlyacquired German companies Neumayer Tekfor and Kuepper Group, making it one of the largest integrated global forging, casting and machining entities.

Earlier this year, Amtek had also acquired a majority stake in Jamshedpur-based automotive component maker JMT Auto. Amtek Group, which has four listed entities—Amtek Auto, Amtek India, Ahmednagar Forgings and JMT—recently entered into an agreement with global investment firm Kohlberg Kravis Roberts (KKR) for a long-term bridge loan of 235 million (about Rs 1,800 crore) through another Singapore subsidy, Amtek Global Technologies.

 

Source:http://economictimes.indiatimes.com/