Auto parts maker Rane (Madras) Ltd has agreed to acquire the US-based Precision Die Casting Inc for an enterprise value of $8.9 million to expand into the overseas die-casting market.
The Indian company will also invest $2 million as equity to improve the US firm’s operations and turn it around, according to a stock market disclosure.
Rane (Madras) will make the acquisition through a unit it plans to incorporate in the Netherlands. It expects to complete the deal by March 31.
PDC makes high-pressure aluminium die-casting for automotive applications. This includes steering and compressor-related die casting components. Its customers include auto parts suppliers TRW, Nexteer and JTEKT. In 2014-15, PDC had revenue of $29 million.
Rane (Madras) is part of the Chennai-based Rane Group and mainly makes steering and suspension systems.