Auto components maker Endurance Technologies Ltd has acquired a 99% stake in Adler SpA, an Italian company that specialises in providing systems solutions for clutches, gears and other related components.
Endurance said in a stock-exchange filing it has acquired Adler for 3.5 million Euros (approximately $3.79 million or Rs 29.03 crore at current exchange rates).
The acquisition has been made through Endurance Overseas Srl., Italy, a subsidiary of Endurance. It will help Endurance strengthen its engineering and product portfolio.
Adler, which operates a manufacturing plant in Rovereto, was already a technology provider to Endurance. Its niche lies in the research and development, engineering services and product development for original equipment manufacturer customers in Europe.
Following this acquisition, Endurance says it now has ten manufacturing plants in Europe, out of which seven are in Italy and three are in Germany.
Shares of Endurance ended the day 2.58% up at Rs 609.35 apiece.
Investors in Endurance include Singapore sovereign wealth fund GIC, which currently holds a 1.8% stake in the company, according to stock exchange data. Per VCCEdge, the data research arm of Mosaic Digital, Endurance reported consolidated net sales of Rs 7,510.49 crore for the 2019 financial year and posted profit-after-tax figures of Rs 515.80 crore for the same period.
Endurance has also made acquisitions in the past to shore up its product and operational strength. In January last year, for example, it acquired the Italy-based aluminum die casting company Fonpresmetal Gap SpA for 8.16 million euros ($9.3 million and Rs 65 crore).
The company said that acquisition would augment its own casting capacity and backward integration processes.
In May last year, VCCircle reported that GIC had increased its stake in the company by picking up shares through an offer for sale by company promoter Anurag Jain. GIC had initially invested Rs 25 crore in Endurance Technologies at the time of the anchor allotment when the company went public in 2016. GIC had then bought the shares at Rs 472 apiece.