Dec 17 2004
Bharat Forge Limited (BFL), the flagship company of the over $ 1 billion Kalyani Group, announced the acquisition of CDP Aluminiumtechnik GmbH & Co KG (CDP AT) today.
CDP AT belongs to the renowned CDP group and is a significant player in Europe in the area of aluminium forged components used in passenger cars and other automotive applications.
In an all cash deal, Bharat Forge has acquired 100% ownership interest in CDP AT, with immediate effect.
The transaction has been concluded at the enterprise value of Euro (€) 6.30 Million. This is funded by way of Equity of € 3.80 Million and Non Recourse debt of € 2.50 Million. Out of the total Equity, € 2.00 Million is being contributed by BFL in phased manner over six months, and the balance of € 1.80 Million is being contributed out of the internal cash accruals of CDP Bharat Forge GmbH and CDP AT.
While announcing the acquisition, Mr B N Kalyani, Chairman & Managing Director, Bharat Forge said, “The CDP AT acquisition is an important part of Bharat Forge’s long term business strategy. The acquisition marks the entry of the company into the aluminium auto-component business.”
He further added, “The acquisition will significantly strengthen the company’s position in the global Passenger Car & Chassis Component business and is a step towards attaining global leadership. CDP AT will enhance Bharat Forge’s product range & technical capabilities, in both steel and aluminium”. This would enable BFL’s existing customers to source complete spectrum of forged auto components across steel & aluminim segments from a single source. It would also enable BFL to enlarge its product offerings for a potential value added systems & assembly market.
For more information on aluminium, click here.