Tata Technologies to buy Sweden's Escenda Engineering
09 May 2017
Tata Group company Tata Technologies yesterday struck a deal to buy Swedish engineering and design specialist Escenda Engineering AB, for an undisclosed sum.
The deal is an essential component in Tata Technologies' European growth strategy and comes after its recent $26-million investment in the development of a new European headquarters in the UK.
Post closing, Escenda will become a wholly-owned subsidiary of Tata Technologies Europe and the company will retain its management team and entire workforce.
The acquisition will help Tata Technologies accelerate its plans to expand in Europe, which has seen a rapid growth in both the automotive and industrial machinery sectors.
Europe's automotive industry is the world's leading producer of motor vehicles by volume and is also the largest private investor in R&D in Europe.
Founded in 2009, Gothenburg-based Escenda is a leader in automotive product engineering and design.
Tata Technologies said that Escenda's revenue has grown by around 230 per cent across the last four years.
The Pune-based company added that Escenda's proven product development knowledge and history of working with top global manufacturers will deepen Tata Technologies' automotive sector expertise, expand the company's facilities in Sweden, and further grow capabilities through key partnerships in Sweden.
Through this acquisition, Tata Technologies will leverage its global expertise in engineering services to support key accounts in Sweden and the European market.
''The acquisition of Escenda is another boost to our international footprint as well as our capabilities in the automotive sector, where we already support a range of global OEMs. The deal showcases Tata Technologies' ability, confidence and commitment to continue to grow and enhance our international operations,'' said, Warren Harris, CEO of Tata Technologies.
Stefan Wedin, CEO of Escenda, said, ''We are delighted to become a part of the Tata Technologies' family and support their ambitious growth strategy in Europe. We look forward to working together and supporting pioneering projects through our combined deep industry knowledge and innovative approaches to product development.''
Founded in 1989, Tata Technologies provides services in engineering and design, product lifecycle management, manufacturing, product development, and IT service management to automotive and aerospace original equipment manufacturers and their suppliers.
The company operates in 25 countries, and is active in North America, Europe, the Middle East and the Asia Pacific region.