Arvind Dham-led automotive component supplier Amtek Auto Ltd is routing the acquisition of Germany-based Rege Holding GmbH (Rege) through its public listed subsidiary JMT Auto, according to a stock market disclosure.
Jamshedpur-based JMT Auto through its Singapore-based special purpose vehicle (SPV) has acquired Rege for an undisclosed amount, it said on Monday.
Earlier in May, Amtek Auto said it is acquiring Rege through its wholly-owned Singapore-based subsidiary Amtek Precision Engineering Pte Ltd.
Amtek did not respond to VCCircle query on the change in acquisition route.
Rege 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.
JMT Auto, a part of Amtek Auto, manufacturers high-precision gear box, engine and axle components for medium and heavy commercial vehicles. In 2013, Amtek had acquired majority stake in the company from its promoters.
For Amtek as a group, 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.
In April, 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 separate 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 closed at Rs 163.85 each, down 2.30 per cent on BSE in a weak Mumbai market on Monday.