Amtek Auto extends gain on UK acquisition
Tuesday, June 05, 2007Amtek Auto has acquired the entire assets of U.K. based J L French's (Witham) (JLF), a company engaged in the business of manufacturing of HPDC aluminium for automotive application. JLF's business has been developed to offer die-casting solutions including product design, simulation, testing, rapid prototyping, high pressure die-casting, precision machining and assembly. This is predominantly aimed at the European automotive industry. The company supplies its products to Land Rover, Jaguar, Trellborg, Ford and PSA (Peugeot).
JLF's current sales revenues are pegged at about $ 60 Million with 60% capacity utilization.
Amtek Auto is likely to fund the acquisition through $250 million foreign currency convertible bonds (FCCBs) it issued in May 2006.
Net profit of Amtek Auto rose 47.78% to Rs 65.32 crore in Q3 March 2007 as against Rs 44.20 crore in Q3 March 2006. Sales were up 35.97% to Rs 314.64 crore ( Rs 231.41 crore).
In March 2007, Amtek Auto had inked a 50:50 joint venture with VCST Industrial Products of Belgium with headquarters in Sint Truiden, Belgium, to set up a state-of-the-art manufacturing facility for powertrain components in India. The JV will primarily focus on the manufacture of gears and shafts for automotive on- and off-road applications.
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