Backed by investors Warburg Pincus and ChrysCapital, Arvind Dham's Amtek Auto Ltd has finalized negotiations to purchase the business interests of Neumayer Tekfor Group of Germany. There were no details provided for the amount paid but Neumayer has annual revenues amounting to Eur500 million according to the latest BSE filing.
Industry estimates, based on the acquisition of another auto component firm from Germany, place the deal at around Rs475 crore or roughtly US$87 million. The Economic Times, citing sources, placed the acquisition cost at US$500 million.
Neumayer Tekfor is in the business of forging and integrating machinery and has manufacturing units scattered across Germany, Italy, the US, Mexico and Brazil.
On the other hand, Amtek Auto builds automotive components and assembles castings made of iron, gravity and aluminum. Other businesses include forgings, complex machining, flywheel and ring gear assemblies.
The firms have an existing relationship in Neumayor Tekfor GmbH for the manufacture of fractured piston connecting rod assemblies in India.
Join the Conversation