Auto components maker Endurance Technologies Ltd has fully acquired Italian auto-parts manufacturer Grimeca Srl, marking its second acquisition in two months.
Endurance said in a stock-exchange filing that it has acquired a 100% stake in Grimeca for 2.25 million Euros (approximately $2.45 million or Rs 18.60 crore at current exchange rates).
The acquisition was made through Endurance Adler SpA, a step-down subsidiary owned by Endurance Overseas Srl. It will help Endurance strengthen its technological capabilities in the braking systems space, the filing added.
The company said it paid 0.9 million Euros for the stake in Grimeca, with the remaining 1.35 million Euros for acquiring the Italian firm’s technical expertise and intellectual property rights of its braking systems, chassis components and its ‘G Grimeca’ brand.
Grimeca says it is an advanced design services company that develops braking products for motorcycles and light vehicles. It also operates a co-design model with original equipment manufacturer (OEM) partners.
Shares of Endurance ended the day 2.88% up at Rs 647.3 apiece.
Last month, the GIC-backed Endurance announced that it acquired a 99% stake in Adler SpA, an Italian company that specialises in providing systems solutions for clutches, gears and other related components. The near-complete acquisition was conducted for 3.5 million Euros (around Rs 29.03 crore).
Per VCCEdge, the data research arm of Mosaic Digital, Endurance reported consolidated net sales of Rs 7,510.49 crore for the 2019 financial year and posted profit-after-tax figures of Rs 515.80 crore for the same period.
Endurance has also made acquisitions in the past to shore up its product and operational strength. In January last year, for example, it acquired the Italy-based aluminum die casting company Fonpresmetal Gap SpA for 8.16 million euros ($9.3 million and Rs 65 crore).
The company said that acquisition would augment its casting capacity and backward integration processes.
In May last year, VCCircle reported that GIC had increased its stake in the company by picking up shares through an offer for sale by company promoter Anurag Jain. GIC had initially invested Rs 25 crore in Endurance Technologies at the time of the anchor allotment when the company went public in 2016. GIC had then bought the shares at Rs 472 apiece.