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Amtek Auto acquires German forgings company Scholz

By Bhawna Gupta

  • 17 Mar 2015
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.

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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.

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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.

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(Edited by Joby Puthuparampil Johnson)

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