The Kolkata-based Ruia Group on Monday announced it had acquired Germany's leading automotive sealing systems company Henniges Automotive Grefarth GmbH, saying this would help it globally consolidate business in the sector.
Group chairman Pawan Kumar Ruia told reporters here that the deal was inked Oct 15 after eight months of intense negotiations.
The acquired company has been renamed DRAFTEX.
The company clinched the deal after outbidding 29 other foreign companies which were eyeing Henniges after it went into liquidation.
"We are now very competitive after undergoing massive restructuring last year that saw the company's workforce come down to 400 from 1,000," said managing director of the new company, Juregen Hein.
Henniges, a 51-year old company, had a turnover of 84.9 million Euro in 2008.
This is the Ruia group's second overseas acquisition in the automotive sealing systems business and its first takeover of a German company.
The group entered the rubber sealing sector by acquiring of British auto component maker Schlegel Automotive Europe Ltd last year.
With the latest acquisition, the Ruia Group has global customers like Toyota, Daimler, BMW, Audi, Nissan, Honda and several other auto majors as client.
The Ruias acquired the German firm by floating a Special Purpose Vehicle Well Sea in Mauritius.
"The SPV has acquired 60 percent shares in the new company DRAFTEX, which has acquired the assets in Heinz. There is no leverage situation," Ruia said.
Hein holds 15 percent of the shares in the new company while Heinz administrator Wolf Von Der Fecht owns 25 percent.
"But we have the call option on the shares held by Fecht after three years. Similarly, for the shares now in the hands of Hein, we have a call option after five years," Ruia said.
Ruia refused to specify the cost of the acquisition, but said it was more than the Schlegel deal.