Setco Automotive acquires US company for USD 4.9 mn

Mumbai, Jan 2 (UNI) Setco Automotive Limited (Setco) today announced that it has acquired the US manufacturing facility of Haldex Brake Products Corporation, USA (Haldex) in an asset purchase deal valued at US 4.9 million dollars on an ongoing basis.

A Setco release said the acquisition of the US company had been made through its overseas subsidiary Setco Automotive NA Inc (SANAI) in Paris, Tennessee.

With the acquisition, Setco would add renowned global OE customers to its already existing list of clients. The acquisition was part of Setco's strategy to be a pre-eminent player in the global market. The company plans to expand operations to over 30 countries by 2010.

Setco, with its physical presence in USA, UK and India could now cater to various geographies globally in a strategic manner.

Commenting on the deal, Setco Automotive's managing director Harish Sheth said ''With this acquisition of the US operation and rights to Lipe and other automotive product lines, Setco proposes to penetrate various new markets and expand its global business significantly in the coming 3-5 years.'' ''The investment and acquisition are in harmony with our commitment to deliver long term stakeholder value,'' he added.

The internationally recognised 'Lipe' brand would enable this with its reputed robust design, technical expertise and global quality. Setco would leverage these strengths with their advantage of low-cost manufacturing to create a sustainable competitive global presence.

UNI