Monday, February 5, 2007

Auto component manufacturer Varroc acquires Italian forgings company Imes

Varroc Group, an automotive parts manufacturer, has acquired Imes SpA, an Italian hot forgings manufacturer, for an undisclosed sum. Imes has an annual installed capacity of 110,000 tons of forged parts and annual sales of about €60 mn with an EBIDTA of €12 mn in the last calendar year. Imes has manufacturing units in Italy and Poland, with large utilizable capacities in Poland. The acquisition has been financed by a combination of internal accruals and debt. Through the acquisition, Varroc hopes to enhance customer service to its clients in Europe by augmenting capacity and increasing product diversity. It would also shorten the length of supply chain to its clients, while preserving the benefits of low cost manufacturing. Varroc has significant presence in automotive components for two, three and four wheelers in the domestic and overseas markets supplying polymer, electrical and electronic and metallic components. It has 17 manufacturing facilities across Western and Northern India and is targeting a turnover of about $300 mn this fiscal.

Article in The Economic Times.

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