The Ruia group has acquired Germany-based fasteners manufacturer Acument in an asset deal that involved the buyout of four plants and a logistics centre. The acquisition has been done through a new company, Ruia Global Fastners AG (RGF), marking the group's entry into the auto ancillary segment.
Following this acquisition, Wealthsea Mauritius (which will hold majority shares of RGF) becomes a powerful outfit in the Ruia group, holding the controlling shares in all overseas companies.
Third buy in Germany
This is the third acquisition of the Ruia group in Germany and the fourth in Europe since 2008.
At least one other Indian company and four other global companies were in the race to pick up Acument, which had filed for insolvency in the wake of its mounting losses, Rudiger Van Der Fecht, the administrator in charge of the company, said here at a press conference.
Also present were Ruia group Chairman Pawan Ruia, RGF President and CEO Robin Kendrick, a representative of PriceWater House Germany, and Mr. Ruia's daughter Pallavi Ruia, who has been appointed head of integration. She is also the CEO of Schlegel Automotive Europe.
Acquired in 2008, U,K,-based Schlegel is engaged in automotive sealing systems. This acquisition was followed by the buy of Draftex Automotive GmbH, a sealant company based in Germany in 2009, and that of Gumasol in 2010.
This is also a German company engaged in making solid tyre and industrial rubber products.
Mr. Kendrick said fasteners are used in the automobile industry and through this buy, he hoped to add the Tatas and Mahindra to the list of OEMs of the company such as Volkswagen, BMW, Diamler, Audi, General Motors and Ford Motors.
Mr. Ruia declined to reveal the price of the acquisition, but said the financing was partly through internal accruals and the balance by seller's credit.
The Ruia group has a call option to buy the lone share held by the administrators.
The acquired company's revenues were estimated as euro 227 million in 2010 and the Ruia group has a capital expenditure plan of euro 4 million to be made by 2013. There are also plans of setting up a RGF unit in India.
He said 50 per cent of the Ruia group's turnover was now accounted for by its overseas outfits and Wealthsea Mauritius was gaining in power, being the holding company for all the overseas companies of the Ruia group. Another special purpose vehicle Wealthsea Singapore holds Dunlop and Jessop.