CHENNAI: Ashok Leyland Limited (ALL) has signed a share purchase agreement to acquire 100 per cent of the paid-up capital of Defiance Testing and Engineering Services (DTE), based near Detroit, Michigan, U.S. The purchase price of the transaction is $17 million, according to a release.
The release said that DTE (owned by GenTek, U.S., a publicly traded company in Nasdaq) is engaged in providing independent testing services for leading auto OEM's and their Tier 1 and Tier 2 suppliers.
The company through Ashley Design and Engineering Services Division (ADES) is engaged in providing design and engineering services to the automobile industry and also to customers in the industrial machines and power generation sectors.
The acquisition of DTE will help ADES to enlarge its customer base and serve the leading auto makers in the U.S. The acquisition is subject to completion of the agreed closing conditions and further corporate and statutory approvals from both GenTek and the company. The closing is expected to be complete by the end of this month.