Arvind Dham-led automotive component supplier Amtek Auto Ltd has signed an agreement with Japan-based Asahi Tec Corporation to acquire its various group companies which are engaged in iron casting business, according to a stock market disclosure. The deal amount is not disclosed.
The acquisition will be routed through its overseas arm.
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.
If the deal materialises, it will be Amtek's second global acquisition within a couple of months. Last month, it acquired Germany-based forgings maker and specialty steel trader Scholz Edelstahl GmbH (Scholz).
Founded in 1999, Asahi Tec manufacturers engine blocks, cylinder heads, front axle beams, crankshafts, turbocharger housings and other engine and suspension related iron, castings and forgings. The firm operates in three business segments—steel casting and forging segment, light alloy segment and device segment.
In 2010, Amtek formed a JV with Japanese firm Sumitomo Metal Industries for production and sale of forged crankshafts for automotive applications in India.
Amtek Group has acquired several such global companies in past.
Shares of Amtek Auto were trading at Rs 155.80 each, up 2.2 per cent on BSE in a weak Mumbai market on Tuesday at 1.14 PM.
(Edited by Joby Puthuparampil Johnson)
