Mahindra inks pact to acquire 68 pc stake in Jeco Holding AG

Mumbai, Sep 28 (UNI) Utility vehicle major Mahindra&Mahindra has agreed to acquire 67.9 per cent stake in Jeco Holding AG, one of the top five forging companies in Germany, for a consideration of around 140 million Euros.

Announcing this, M&M Vice Chairman and Managing Director Anand Mahindra told newsmen here today: ''With this acquisition, we are putting ourselves in a leadership position in the European forging industry.'' However, the transaction is subject to receipt of necessary approvals.

Currently, 90 per cent of shareholding in Jeco Holding AG was held by Scholz AG, with the remaining 10 per cent held by management, he pointed out.

He explained that it (Jeco) was the largest outbound acquisition in the auto component arena.

Jeco Holding AG with over 120 years of experience is primarily focused on the truck, bus and trailer market. Its major products include gear boxes, engine&axle pans, hubs, gears and piston heads.

It has production capacity of 100,000 tpa and revenue turnover of Euro 180 mn (for CY 2005). Jeco's top customers include Volvo, DaimlerChrysler Group, ZE Group, MAN Nutzfahrzeuge, Linde, Renault, Agco, Kessler and Kolbenschmidt.

The company will benefit from the continued presence of the erstwhile shareholders and management of Jeco Holding AG in further building the business of the company, according to Mr Mahindra.

Mr Thomas Komer will continue to hold the position of Chief Executive Officer. He has the benefit of a rich experience in the forging industry for over 20 years and has held positions with leading forging companies including Carl Dan Peddinghaus.

Replying to a question, Mr Mahindra said this (Jeco) creates a platform that enables M&M to pursue its vision of building the auto components business as one of the core businesses of Mahindra Group.

UNI SN SSS SKB1842