Sintex buys auto parts firm for Rs 149 crore

Sintex Industries, Gujarat-based manufacturer of plastic products, has announced the acquisition of the automotive products business of Bright Brothers of Mumbai, a manufacturer of automotive injection molded plastic in an all-cash transaction for Rs 149 crore.

Sintex will acquire the company which would include ownership of Bright Brothers' all five automotive component manufacturing plants located in close proximity to major automobile production hubs like Chennai, Sohna, Pune, Pithampur and Nashik.

The newly-formed entity will retain all 400 employees from the existing workforce of the automotive division.

Commenting on the acquisition, Amit Patel, managing director, Sintex Industries, said, "This acquisition represents a significant step towards us establishing a strong presence in the domestic plastic auto component market. Bright Brothers Ltd is a consistently performing high growth company, with a portfolio of established products with tremendous potential, catering to leading OEMs in the domestic automobile segment. It would also enable us to gain access to new and credible customers in the automotive space and would qualify us as a reputed manufacturer and supplier of automotive plastics in addition to our existing non-auto plastic components product suite."

YES Bank was the strategic and financial advisor to Sintex Industries on the transaction while Ambit Corporate Finance Pte acted as the strategic and financial adviser to Bright Brothers Ltd.

This transaction follows the recent $20.5 mn acquisition by Sintex of Wausaukee Composites Inc, US, a manufacturer of highly-engineered composite plastic components.

Sintex Industries Ltd will acquire the automotive plastics division of Bright Brothers Ltd through Bright Auto Plastic Private Limited, a downstream subsidiary of Sintex Industries Ltd.

Bright Brothers manufactures a range of exterior and interior systems.

These include amongst others front and rear bumper systems, green house systems, seating systems, acoustic management and cockpit systems.

A release from Sintex said the growth drivers of Sintex presently are composites and prefabricated structures.

This acquisition is looked upon by the company as a means to increase the Company's product mix.