Amtek Auto acquires German forgings company Scholz

Arvind Dham-led automotive component supplier Amtek Auto Ltd has acquired Germany-based forgings maker and specialty steel trader Scholz Edelstahl GmbH (Scholz) for an undisclosed amount, the company said on Tuesday.

The deal was routed through its Singapore-based subsidiary Amtek Precision Engineering Pte Ltd.

Scholz is a hot die forgings manufacturer for the auto and non-auto component industries. The firm is also engaged in the specialty steel trading business.

Although the transaction value was not disclosed, a senior Amtek Group executive told business television channel CNBC that Scholz's enterprise value is pegged at around 3.6-3.7 times EBITDA, which in turn is around €14-15 million ($14.7-15.7 million). This translates into an enterprise value of around Rs 335-368 crore ($53-59 million).

As a group, Amtek, which has other public-listed firms such as Amtek India, has bought several such firms, especially in Germany, over the past few years.

Last year Amtek India acquired Germany-based Kuepper Group of companies, which brought under its fold iron, aluminium casting and integrated machining with five manufacturing facilities across Germany and Hungary.

In 2013, Amtek Auto acquired business assets of Germany’s Neumayer Tekfor Group, which had annual revenues of around €500 million ($650 million or Rs 3,500 crore).

Back home, it also acquired a majority stake in another public listed auto component maker JMT Auto.

Amtek Auto, which counts ChrysCapital as a shareholder, saw its scrip shooting up over 3 per cent and quoting at Rs 153.8 a share on BSE in a strong Mumbai market on Tuesday at 12.35 PM.

(Edited by Joby Puthuparampil Johnson)

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