The world's second-largest forgings company Bharat Forge Ltd (BFL) through its German subsidiary CDP Bharat Forge GmbH, has acquired French oil & gas machining company Mecanique Generale Langroise (MGL) for $14.27 million (€11.8 million or Rs 90 crore), as per a stock market disclosure.
The acquisition will help Bharat Forge to further consolidate its position in the oil & gas space by enhancing service offerings and geographical reach.
MGL primarily caters to premium global oil & gas customers, all of whom are already customers of BFL. It focuses on precision machining and other high value added processes like cladding for critical application in the oil & gas industry. The firm supplies components for drilling application like blow out preventers (BoP), surface and sub-sea well heads in addition to components for power sector.
"The acquisition is in line up with our strategy of moving up the value chain in the industrial business. This acquisition enhances BFL's ability to provide turnkey solution and simultaneously strengthens the product offering in the oil & gas sector," Baba N Kalyani, chairman and MD of Bharat Forge.
The forging company is looking at many other opportunities in North America, North Sea area and Middle East.
CDP Bharat Forge GmbH, a wholly-owned subsidiary of Bharat Forge, designs, manufactures, and supplies forged chassis and engine components, and non-automotive systems to automakers in Europe, USA and Asia.
Founded in 1839, the company was earlier known as Carl Dan got renamed as CDP Bharat Forge GmbH in 2003.
Bharat Forge, a part of diversified business conglomerate Kalyani group, is one of the world's largest forgings company in the world behind Germany’s Thyssenkrupp.
In September 2014, the firm offloaded its 50 per cent equity stake in Impact Automotive Solutions Ltd to its joint venture partner KPIT Technologies Ltd.
Bharat Forge scrip closed at Rs 944.10, up 0.56 per cent on BSE in a strong Mumbai market on Friday.