Gujarat-based Sintex Industries Ltd, which has interests in plastics and textiles business, has acquired a 90 per cent stake in German company Geiger Technik GmBH for $50 million. The acquisition has been done through its wholly owned Netherlands-based subsidiary Sintex Holding B.V. and Geiger Technik has been given an enterprise value of $55.5 million. The rest 10 per cent stake would be retained by the Geiger family. The acquisition would help Sintex expand and strengthen its position in the European markets. Yes Bank Pvt Ltd and DZ Bank Germany acted as the financial and strategic advisors for the transaction.
“This acquisition offers Sintex a strategic market entrance in Germany which the capital of European automative market. Geiger makes state of the unique innovative products which are well positioned in a market where fuel consumption reduction becomes the USP of Origanal Equipment Manufacturers (OEMs),” said Amit Patel, Managing Director, Sintex Industries Ltd. It plans to introduce products of Geiger through BrightAutoplast and plans offshoring and cross-selling of the products. Sintex has retained the existing management of Geiger and has appointed Olaf Matthei as the Managing Director of the company.
Greiger Technik was formed in 1960 and has an EBITDA and Sales of $14 million and $185 million respectively. The company is considered to be a European market leader in coolant and brake fluid reservoirs. The company has three hi-tech plants in Germany and one newly formed plant in Poland, which Sintex says will give it low-cost country advantage. Geiger also has its own product design and development centre. The existing clientele of Geiger includes BMW, Volkswagon, Audi, Daimler, Porsche, Opel, among others. It also manufactures 30 different sophisticated precision plastics parts like tanks and reservoirs, piping air ducts etc.
Sintex has done several overseas acquisitions in the previous year. Last yar it had acquired French company Nief Plastics $55 million last year. It has also acquired three US- based companies last year- Bright Brothers, Wausaukee Composites Inc and Nero Plastics. Last moth it also acquired Indore-based Digvijay Communication and Networks in the form of a slump sale deal for $12 million.