M&M acquires UK's largest auto forging company
Our Corporate Bureau
04 January 2006
Mahindra & Mahindra Ltd (M&M) has acquired a 98.6-per cent stake in The UK-based Stokes Group Ltd.
Stokes Group is the largest automotive forging company in the UK with state of art 'net shaped forging technology'. The group includes three companies, two of which are manufacturing companies located at Walsall and Dudley, near Birmingham, in the UK. Stokes operates with OEM and tier 1 suppliers. Its major customers include Koyo Bearings, GWK Group, Land Rover, ZF, Bosch, Benteler, Visteon, Ford and Jaguar. The turnover of Stokes Group was GBP 25 million for the year ended December 31, 2004.
This acquisition will strengthen M&M's Mahindra Systems and Automotive Technologies (MSAT), which has adopted the design to delivery model aimed at offering a full range of services from covering engineering services, strategic sourcing of components and supplying of auto component as a tier 1 manufacturer and positioning itself as an 'art to part' supplier.
Anand Mahindra, vice chairman and managing director of the company said 'We believe the Stokes acquisition demonstrates our commitment to build a world class business that serves its global customers and enhances value for M&M's stakeholders'.
Khaitan & Co. and Sherrards Solicitors, of the UK were M&M's legal advisors for the deal.