Auto components maker Endurance Technologies Ltd has acquired Italy-based aluminium die casting company Fonpresmetal Gap SpA for 8.16 million euro ($9.3 million and Rs 65 crore).
In a stock exchange disclosure, Endurance said that it made acquisition through its subsidiary Endurance Overseas Srl., Italy. Fonpresmetal will now be renamed as Endurance Castings SpA.
The acquisition will augment the auto components maker’s casting capacity, help in backward integration and will also provide Endurance with future growth opportunities in the European market. With this acquisition, the Endurance Group now has nine manufacturing plants in Europe, with six in Italy and three in Germany, the disclosure added.
Endurance funded the acquisition through internal accruals and borrowings.
Fonpresmetal had been Endurance’s preferred supplier for highly complex aluminium die casting parts in Italy, where it has a manufacturing facility at Bione in Brescia with a capacity of 6,500 tonnes, of which 50% is dedicated for supplies to the Endurance Group.
The second most important customer of Fonpresmetal is the Bosch Group, according to the disclosure.
Endurance makes aluminium castings, aluminium alloy wheels, suspension and transmission systems and braking systems, according to its website.
Endurance Technologies Ltd made its stock market debut in October 2016.
The company’s consolidated revenue from operations stood at Rs 6,666 crore for the financial year 2017-18, as against Rs 5,991.2 crore in the previous year. Net profit rose to Rs 390.75 crore from Rs 330.31 crore.