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13. January 2014

IN / GER - Amtek India Acquires Germany's Kuepper Group

Amtek India is acquiring substantial stake in Germany based Kuepper Group for an undisclosed amount , the company said in a filing with BSE.

However a piece in ET states the acquisition price to be at EUR 200 Mn. The company would be floating an SPV for the purchase and financing will be through its internal accrual.

The acquisition would provide the company access to high-tech German machining technology and synergize Amtek's core expertise in casting and forging operations increasing its consolidated capacity to more than one million tonnes per year and bringing the total to eight facilities in Germany.

It would also add companies like BMW, Daimler, Renault Nissan Volkswagen to Amtek’s clientele list.

The Kuepper group is engaged in the business of iron and aluminium casting and integrated machining having four manufacturing units in Germany and one in Hungary.

With over 900 employees, Kuepper manufactures both iron and aluminium die cast products with a product portfolio that includes turbo charger castings, turbo modules, turbo housings, transmission parts, suspension and steering parts. It supplies components primarily to customers in the automotive sector and its end markets include passenger cars, light, medium and heavy commercial vehicles.

The company’s 2013 revenues are estimated to be approximately EUR 200 Mn.

Amtek India, subsidiary of Amtek Auto is manufactures machined and cast components for two wheelers, cars and tractors. The company has three manufacturing units at Gurgaon in Haryana, Solan in Himachal Pradesh and Bhiwadi in Rajasthan.

The company serves as an OEM to Maruti Udyog, JCB, New Holland Tractors, John Deere Tractors, Hundai Motors, ITL, Eicher Motor and also refrigeration industries like LG Electronics.

This is the second German acquisition after Amtek bought substantial business interests of Neumayer Tekfor Group for EUR 500 Mn. Apart from the two German acquisitions, Amtek also bought a controlling stake in JMT Auto earlier this year.

Currently, Amtek Group, along with its subsidiaries, operates around 60 facilities in India, the UK, Germany, Brazil, Italy, Mexico, Russia and the US.

Over the medium term, factors such as growing thrust on localisation and expanding businesses in new geographies should allow the components industry to grow at a relatively faster pace than the auto OEM segment, according to a study by ICRA.

The Indian auto component industry’s turnover is projected to touch US$ 115 billion by 2020-21 with an estimated CAGR of 14% during 2013-21.

Recently in this space Sona Koyo Steering Systems had exited its investment in the European JV, Fuji Autotech Europe S.A.S., by selling its holding of close to 49.3lac shares to its JV partner Fuji Kiko Europe S.A.S.; Hindustan Motors was planning to divest the forge and foundry units.


Source: dealcurry.com

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