Amtek Global Technologies secures long-term financing from KKR 10.6 KB Add to Briefcase
Amtek Global Technologies ("AGT" or the "Company"), a subsidiary of Amtek Auto (NSE: AMTEKAUTO; BSE: 520077), one of the world's largest global forging, casting and integrated machining companies, and the credit business of leading global investment firm KKR today announced the signing of definitive agreements under which KKR will provide AGT with €235 million of long-term, flexible financing to replace its existing bridge loan and consolidate all of the Company's existing debt. This facility will also act as a catalyst to help integrate Amtek Auto's existing international operations under the Singapore headquartered AGT.
The Amtek Group has annual turnover of over US$2.7 billion and manages 65 world-class facilities. It has an extensive auto-product portfolio with a range of highly engineered components for passenger cars, commercial vehicles and two- and three-wheelers, and also caters to the non-auto sector. In recent years, the Amtek Group has expanded its operations both organically and through strategic acquisitions. AGT has 19 manufacturing facilities across Germany, Italy, UK, Brazil, Hungary, US and Mexico. AGT produces high-technology products including turbochargers, precision camshafts, valve train components, conrods, and safety fasteners. The Company contributes close to 40% of the Amtek Group's revenues.
Kunal Sabharwal, Chief Executive Officer of Amtek Global Technologies, said, "This long-term financing solution is a significant milestone for Amtek's international business. The flexibility it provides enables us to further scale our manufacturing platform and advance our global growth strategy to the benefit of our worldwide blue-chip customers and stakeholders. By leveraging its global teams, KKR has presented us with a one-stop solution to consolidate our financing facilities across Amtek's international businesses. This financing is the beginning of a long-term partnership with KKR that will enable us to continue to develop new and exciting opportunities in the automotive components market."
Marc Ciancimino, Member and Head of European Private Credit, said, "KKR seeks to provide tailored capital solutions to good companies with strong management teams and favorable growth prospects. We are pleased to expand our direct lending business to a global corporation of this high caliber and play a part in its continued success."
BV Krishnan, a Managing Director in KKR's India office, said, "Members of KKR came together globally to provide this long-term solution to Amtek. We started this conversation in India and continued to have productive discussions in Europe and the Americas to explore ways of providing the best source of flexible capital as a complete solution to meet the Company's needs. Arvind Dham has created a world-class, and significantly scaled international auto components business, with a terrific management team. We are very happy with this progress and look forward to working with the Amtek team in the coming years."
Through its credit business, KKR looks to provide flexible, long-term capital which can help companies achieve their objectives of balance sheet consolidation, deleveraging and long-term growth. KKR provides structured financing solutions across junior debt, senior loans, mezzanine and direct lending through multiple capital pools.
Further details of the transaction were not disclosed.
About Amtek Auto
Amtek Auto (NSE: AMTEKAUTO; BSE: 520077) is one of the largest integrated component manufacturers headquartered in India with truly global manufacturing facilities. The company has significant expertise in the automotive components sector with proven capabilities in forging, grey and ductile iron casting, gravity and high pressure aluminium die casting and machining and sub-assembly. It has an extensive product portfolio with a range of highly engineered components. The company supplies components for passenger cars, light and heavy commercial vehicles, 2/3 wheelers, tractors, locomotive components and construction and earth moving vehicles. Over the last decade, Amtek Auto has established several joint ventures and technical partnerships with leading global firms to offer customers a world class product range.
KKR is a leading global investment firm that manages investments across multiple asset classes including private equity, energy, infrastructure, real estate, credit and hedge funds. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation at the asset level. KKR invests its own capital alongside its partners' capital and brings opportunities to others through its capital markets business. References to KKR's investments may include the activities of its sponsored funds. For additional information about KKR & Co. L.P. (NYSE: KKR), please visit KKR's website at www.kkr.com.
Finsbury (For KKR Europe)
+44 (0) 7795 300 397
+1 212 230 9722
+852 3602 7335
Edelman India (for KKR India)
Mihir Mukherjee, +91 99875 56960
For Amtek Auto
+91 11 4234 4444
Chief Financial Officer, AGT
+49 69 707 983388