Sundram Fasteners to acquire Peiner Umformtechnik GmbH
26 Dec 2005
Sundram Fasteners Ltd (SFL), part of the $3-billion TVS group, has announced that the company has entered into an agreement with Textron Deutschland Beteiligungs GmbH, Bonn, (Textron) to acquire 100 per cent share capital of its subsidiary Company, Peiner Umformtechnik GmbH (Peiner) located at Peine in Germany. (See: Takeover tycoon scans the globe) The agreement, subject to fulfillment of conditions and formalities, will take effect on January 1, 2006. The consideration payable by the company is based on a formula agreed upon with Textron and would depend on the value of assets of Peiner as on December 31, 2005.
SFL (turnover: Rs1,037 crore) expects that access to customers of Peiner will also help in increasing the export of its products manufactured in India, including fasteners not currently in the manufacturing programme of Peiner. It will also be able gain access to retail market through the strong distributor network of Peiner. SFL expects Peiner''s expertise in high strength construction fasteners to open new avenues for the company globally.
SFL is engaged in the business of manufacture and sale of high tensile fasteners, cold forgings and extrusions including precision formed gears, powder metal parts, oil and water pumps and engine parts, radiator caps, hot and warm forgings, auto components and iron powder.
The acquisition will add impetus to SFL''s effort to globalise its business and to gain access to new customers and markets in Europe. In 2003, the company had acquired the precision forged components business of Dana Spicer, UK, through its wholly owned subsidiary, Cramlington Precision Forge Ltd. In 2004, the Company set up a factory for manufacture high tensile fasteners in Zhejiang province in China. During 2005, Sundram Bleistahl Ltd, a subsidiary of the Company, has set up a factory at Hosur for manufacture of valve seat inserts. Production of valve seats has commenced in December 2005.(Sundram Fasteners spreads its wings) ICICI Securities Ltd acted as the sole financial advisor on the transaction.
