Mahindra CIE set to acquire Bill Forge for Rs1,300 cr: report

Automotive components supplier Mahindra CIE Automotive is reported to be all set to acquire Bangalore-based Bill Forge, a forged and machine components manufacturer, for about Rs1,300 crore or about $200 million.

The Economic Times cited people directly familiar with the matter as saying that the 100 per cent acquisition is scheduled to be announced this evening. Leading India-focused private equity firm Kedaara Capital, which bought a 50 per cent stake in Bill Forge last year, was instrumental in driving the transaction and will exit the company with a handsome gain.

Bill Forge founders, led by Anil Haridass, will continue to lead the operations of the company, which will be held as a subsidiary of Mahindra CIE.

Both Mahindra Group Kedaara Capital declined to comment on what the companies said were market rumours.

Bill Forge reportedly had around $100 million (Rs650 crore) revenue last financial year. The company, which has six production plants, counts Indian and MNC auto giants such as Mahindra, Bajaj, Fiat, Bosch and Honda among its clients.

Kedaara is a $600-million private equity firm co-founded by former Temasek India head Kejriwal along with General Atlantic Partners managing directors Sunish Sharma and Nishant Sharma.

Mahindra CIE, a joint venture between Mahindra Group and CIE of Spain, manufactures and supplies engine and chassis forged components for commercial and passenger vehicles. Mahindra had consolidated its multiple auto components companies into this alliance and holds 20 per cent, while the foreign partner owns 53 per cent.