Sakthi Group buys INTERMET Europe for $130 mn

Chennai, Apr 30 (UNI) Sakthi Auto components, a wholly-owned subsidiary of Sakthi Group of Companies, today announced the acquisition of "INTERMET Europe" from US-based INTERMET International for a consideration of 130 million US Dollar.

Addressing a video conferece from Germany, Sakthi Group Vice Chairman and Managing Director M Manickam said the deal was closed last Friday and the Sakthi Auto had taken charge of the operations of INTERMET Europe.

The new entity would be called "Sakthi Automotive Group" and would be headquartered in Germany.

"We have raised the money, paid them and closed the deal," Mr Manickam said adding, of the 130 million USD, the loan component constituted 75 million USD. The balance 55 million USD comprised contributions from parent companies and preferential shares.

Employing 1,500 people and having a turnover of 165 million Euro last year, INTERMET has market leadership in Europe in ductile iron castings for passenger car disc brakes and diesel injection pump housings.

The acquisition would help the Sakthi Auto gain access to the European market, technology and manpower. "As a result of the acquisition, the combined group will have a strong presence in both European and Asian markets," Mr Manickam said.

A European team would come to India by the end of May and finalise the integration by the first week of June. Later, the manufactured products would be marketed under the Sakthi brand which was already popular in the European and US markets, he said.

INTERMET Europe also had substantial market positions in the manufucture of castings for heavy duty disc brakes, control arms, differential cases, bearing caps and rear axle housings, he said.

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