Auto ancillary maker Amtek Auto is reported to be making a bid to acquire German castings company KSM Castingsfor around 250 million euros (around Rs1,700 crore). Apart from Amtek Auto two global private equity players are also reported to be in the race to acquire the firm for which the bidding has entered the second round.
The Frankfurt-based KSM Castings supplies light metal casting products for the automotive industry.
The proposed acquisition is part of Amtek's strategy to boost its revenues from overseas operations.
If the deal is successful, it will be one of the largest acquisitions by an Indian company in the automotive forging category.
KSM Castings' clientele includes Volkswagen Group, Daimler, BMW, Ford, Porsche, Bosch, and Mann & Hummel. The German company reported sales of e355 million last year.
A few days ago Amtek Auto announced that its subsidiary Amtek Transportation Systems had set up a 50:50 joint venture company with US-based American Railcar Industries to make railcars in India. According to plans the Amtek Transportation Systems and ARI would start constructing the facility in the second half of 2008 with production expected to begin in the third quarter of 2009.
The joint venture would produce railcars and component products for sale in other specific countries in South East Asia and the Middle East.
Amtek Auto recently acquired UK-based gear company Triplex Ketlon while its past acquisitions include the US-based ring gears manufacturer Midwest Manufacturing (2002) the UK-based companies GWK and Lloyds Brierly Hill, Sigmacast Iron and the aluminium casting facility of Germany-based Zelter.
Amtek Auto's revenues largely come from selling components to passenger carmakers like BMW, Hyundai, CNH Global, Scania, Delco Machining, Land Rover and Renault
Amtek Auto is setting up around 10 greenfield facilities in India with a capital expenditure of around Rs 300 crore.
Source: Domain B