Coimbatore-based automotive components manufacturer Pricol Ltd has decided to acquire Mellin do Brasil, a Brazil-based auto component manufacturing company, as part of its plans to foray into the Brazilian auto component industry, according to a stock market disclosure.
The board of directors of the company at a meeting held on December 11, 2014, proposed to acquire 99.99 per cent stake of the Brazilian company.
Financial details of the deal and name of the target company have not been disclosed.
However, according to a media report, it will be a deal in single digit millions of dollars.
The deal is expected to be completed by the end of January 2015.
Mellin is a manufacturer of oil and water pumps used by auto companies. Its clientele includes General Motors, Volkswagen, Fiat, and Harley Davidson.
Established in 1972, Pricol (earlier known as Premier Instruments & Controls Ltd) manufactures and markets automotive components like dashboard instrument, speedometer cables, oil pumps, disc brakes, sensors, oil pumps, industrial gauges, vehicle security systems.
Recently, the firm sold its speedo cable business to Bangalore-based automotive cable manufacturing company Suprajit Engineering Ltd.
Last year in April, Japanese firm Denso Corporation had picked 51 per cent stake in Pricol Components, a subsidiary of Pricol.
In 2012, the company hived off its plant in Pune into a JV with Johnson Controls Enterprises UK Ltd (a wholly owned subsidiary of Johnson Controls Inc).
Pricol’s scrip closed at Rs 43.90, up 2.69 per cent on BSE in a weak Mumbai market on Friday.
(Edited by Joby Puthuparampil Johnson)