Solapur-based automotive components maker Precision Camshafts Ltd has taken full control of its Dutch and German units, with the initial acquisition of both having taken place in 2018.
In separate stock-exchange filings, Precision Camshafts said that it had acquired the balance 49% and 24% stakes in EMOSS Mobile Systems BV and MFT Motoren und Fahrzeugtechnik GmbH, respectively.
The moves now make both units wholly-owned step-down subsidiaries of Precision Camshafts.
The 49% stake in EMOSS has been acquired for €0.6 million ($703,650 or Rs 5.19 crore).
In May 2018, Precision Camshafts had announced that it would buy 51% in the Dutch electric driveline maker for €7.36 million (around Rs 58 crore).
At the time, Precision Camshafts had said the deal would help the Indian firm make an entry into the electric vehicles and equipment businesses, as well as expand its reach in markets such as Europe, North America, and Australasia.
Precision Camshafts also said it acquired the 24% stake in MFT not already held by it for €0.55 million ($645,012 or Rs 4.76 crore).
MFT manufactures camshafts, balancer shafts, and prismatic components.
While Precision Camshafts did not disclose the deal value when it originally acquired the 76% stake in MFT in March 2018, the company said it would buy the remaining 24% stake in the 2021 financial year based on the Germany-based firm’s financial performance in 2019-20.
The completion of this acquisition will help it expand its manufacturing base in the European market.
Shares of Precision Camshafts ended the day 6.43% down at Rs 32 apiece. The company reported consolidated net sales of Rs 746.23 crore for 2019-20, with profit-after-tax figure of Rs 28.17 crore for the same period.
Precision Camshafts was listed in February 2016. The company raised about Rs 410 crore through its initial public offering.
It makes about 150 varieties of camshafts for passenger vehicles, tractors, light commercial vehicles and locomotive engine applications at its plants in Solapur.
The promoters are first-generation entrepreneurs who started the business in 1992.
