Arvind Dham-led automotive component supplier Amtek Auto Ltd has signed an agreement to acquire Germany-based Rege Holding GmbH (Rege) for an undisclosed amount, according to a stock market disclosure.
The deal, which is expected to close by August this year, is routed through its Singapore-based subsidiary Amtek Precision Engineering Pte Ltd.
Post acquisition, Rege will provide machining and assembly of components for both auto and non-auto segments through its subsidiaries. The company was founded in 1987 and manufactures products like connecting rods, crankcases, cylinder heads, gear housings and valve body components. It has two manufacturing plants—one each in Germany and Romania.
Rege generates majority of its revenues acting as a tier I and single-source supplier to leading automotive companies globally.
For Amtek Auto, this is the second acquisition in Germany since January this year. In March, it acquired Germany-based forgings maker and specialty steel trader Scholz Edelstahl GmBH.
Last month, it signed an agreement with Japan-based Asahi Tec Corporation to acquire its various group companies which are engaged in iron casting business. The acquired companies have manufacturing facilities located in Japan, Thailand and China and have long-standing relationships with blue-chip OEMs. These businesses, with around 1,500 employees, have a turnover of $375 million, as per the company's website.
It has bought several such firms over the last few years, especially in Germany. Last year its public listed arm Amtek India acquired Germany-based Kuepper Group of companies, which brought under its fold iron, aluminium casting and integrated machining with five manufacturing facilities across Germany and Hungary.
In 2013, Amtek Auto acquired business assets of Germany’s Neumayer Tekfor Group, which had annual revenues of around €500 million ($650 million or Rs 3,500 crore).
Shares of Amtek Auto were trading at Rs 161.50 each, up 1.10 per cent on BSE in a weak Mumbai market on Monday at 3.06 PM.
