Italy-based Fontana Gruppo has invested an undisclosed amount to buy a stake in privately held Indian auto component maker Bagla Group to expand its footprint in India, the company said on Monday.
Aurangabad-headquartered Bagla Group is led by Rishi Kumar Bagla and manufactures automobiles parts like aluminum die casting, automotive fasteners, automotive electricals and refrigeration products.
The firm has customers like Bajaj, Fiat, Volkswagen, Maruti as well as international customers including Chrysler, Rotax, GPM, Magna, OMR, etc.
“The partnership with Fontana Gruppo would enable the fasteners business of Bagla Group to acquire necessary technological expertise, size and scale, to become the largest fasteners manufacturer in India," said Bagla.
Bagla Group's spokesperson, declined to comment further on the deal and how much stake has Fontana picked in the transaction.
The Fontana Gruppo, one of the biggest manufacturers in the fastener industry, has 20 production plants based in Europe, Mexico, Brazil, India and the US. The company employs over 4,200 people and has revenues of about $1 billion.
"India is the most promising economy in the world at this stage and we are committed to serve our global customers having a presence in India. Additionally, the Fontana Gruppo proposes to use the local manufacturing capabilities and engineering expertise in India to serve its customers in various countries," said Giuseppe Fontana, vice-chairman of Fontana Gruppo.
BMR Advisors, together with its Italian network firm, Translink Corporate Finance acted as financial and structuring advisors to the Bagla Group, while BMR Legal was the legal advisor to the Bagla group.
CFO SIM and Yarpa acted as financial advisors to Fontana Gruppo while Studio Santa Maria and Dua Associates were the legal advisors to Bagla Group.