The Pawan Ruia Group on Monday announced it had acquired German automotive fasteners manufacturer Acument GmH & Co KG from the bankrupt Acument Global Technologies Inc for an undisclosed amount, incorporating a new company, Ruia Global Fasteners AG (RGF).
The group has acquired four plants in Neuss, Beckingen, Neuwied and Schorzberg and a logistics centre in Koln of Acument Germany, which had gone into insolvency in August 2009 following a decline in German automotive production during the economic crisis.
“This acquisition helps the Ruia Group in its journey toward emerging as a leading player in the auto ancillary segment, with the best OEMs (original equipment makers) on our client roll,” Chairman Pawan K Ruia said. “This is also a move to grab opportunities as the automotive industry is expected to grow five-fold by 2020 in India.” However, Ruia, refused to reveal the price of acquisition.“The deal would be financed from internal accruals and three years' sellers credit,” he said.
The 134-year Acument GmH & Co had a turnover of ¤227 million (Rs 1,100 crore) in 2010 and was expecting to touch the figure this year, too, Ruia said. “Initially, our priority is stabilisation. Probably in two years we will have additional manufacturing units here, too, but there is no question of shifting the operation from Germany,” he said.