Mid-size engineering firm Dynamatic Technologies Ltd has acquired German automotive component maker Eisenwerke Erla Gmbh from the Sanmar Group for an undisclosed amount.
Eisenwerke Erla GmbH generates revenues in excess of €100 million (Rs 647 crore) between its two units located in Germany and India.
The deal comes within a month of Dynamatic announcing a demerger of its automotive component business into JKM Erla Automotive Ltd. The latest acquisition has been routed through this firm. The financing for the transaction was advised and arranged by DBS Bank, India.
“With this acquisition, the company will become a global player in the design, development and manufacture of high precision, complex metallurgical products for automotive engines and turbochargers,” Dynamatic Technologies said.
The acquisition will make Dynamatic a global player in the exhaust and turbocharger segments of the automotive industry. The transaction brings ownership of ferrous foundry in Europe, capable of manufacturing intricate ferrous castings from difficult-to-cast materials, besides marquee customers in the automotive and turbocharger markets.
It will also expand its operations in both Europe and India.
Dynamatic, which makes engineering products for automotive and aerospace & defence sectors, besides agricultural and construction equipment, had struck two deals in the UK in 2007-08. In June, 2007, it acquired the manufacturing facilities of Sauer Danfoss Ltd at Swindon and followed it up by snapping Oldland CNC Ltd, a profitable and high-end precision engineering company in Bristol, engaged in the manufacturing of aerospace components and tooling. The Oldland acquisition was completed in October, 2008, for $16 million.