Arvind Dham-led automotive component supplier Amtek Auto Ltd, backed by investors like Warburg Pincus and ChrysCapital, has signed an agreement to acquire substantial business interests of Germany's Kuepper group of companies, a statement said.
Kuepper is involved in the business of supplying machined castings to the automotive industry with customers such as BMW, Daimler, Renault Nissan and Volkswagen. The deal would provide Amtek further inroads as a supplier to European automobile makers.
Shares of Amtek Auto rallied over 12 per cent in the early trades on Thursday morning on BSE in a flat Mumbai market.
Financial details of the transaction have not been disclosed, but The Economic Times reported that the deal was valued at €200 million which is the company’s second big European acquisition in 2013.
Earlier this year, the company acquired business interests of Germany’s Neumayer Tekfor Group for an undisclosed amount. The acquired business has annual revenues of around €500 million ($650 million or Rs 3,500 crore).
It also acquired majority stake in another public listed auto component maker JMT Auto.
Founded in 1985, Gurgaon-based Amtek Auto manufactures automotive components and assemblies, iron, gravity and aluminium castings, forgings, complex machining, ring gears and flywheel assembly.
Currently, Amtek Group, along with its subsidiaries, operates around 60 facilities in India, the UK, Germany, Brazil, Italy, Mexico, Russia and the US.
Last month, one of its private equity investor, Warburg Pincus part-exited the company with a huge haircut.