Pioneer acquisition by March: Clutch

Clutch Auto said the acquisition of Pioneer Inc Automotive Products, would be completed next month.

Clutch Auto said on Thursday the acquisition of the clutch division of the US-based quasi manufacturing and distribution company, Pioneer Inc Automotive Products, would be completed next month.

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Post the acquisition, a wholly owned subsidiary of the company, Pioneer Clutch Inc, would become operational, Clutch Auto informed the stock exchanges.

The acquisition is set to contribute an export revenue of Rs 54 crore during 2006-07 and approximately Rs 225 crore in the five year period, that is, an additional 81 million dollars would be added to the export kitty of the company from the existing client base.

In addition to the existing network of heavy duty customers, this acquisition opens up opportunities for Pioneers existing clients to diversify into heavy duty range.

Randy Parke has joined the new company as General Manager and Jimmy Beam joined as product manager to oversee the technical aspects, it added.