Bharat Forge to buy Walker Forge Tennessee for $14 million
New Delhi: Auto components major Bharat Forge will buy US-based Walker Forge Tennessee Llc (WFT) for $14 million (around Rs95 crore), a move aimed at expanding its product range in automotive and other industrial segments.
The company’s finance and risk management committee has approved the proposed acquisition of 100% shareholding of WFT through its US subsidiary, Bharat Forge America, the company said in a statement.
“The acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage our existing customer relationships while simultaneously enabling the company to address new end-market segments and broaden the product portfolio,” Bharat Forge chairman and managing director Baba N. Kalyani said.
The proposed acquisition is focused on increasing the company’s product offering in the passenger car and commercial vehicle segments as well into industrial sectors such as construction and mining, the company said.
“The transaction value is $14 million which will be funded through internal accruals and debt,” it added.
WFT is a leading supplier of complex, steel and high-alloy steel, engine and chassis components to a diverse group of customers across automotive and industrial sectors. The US firm is expected to record revenues of $28 million this year with a balanced revenue mix across the automotive and industrial sectors.
The proposed transaction will be consummated upon completion of certain conditions and regulatory approvals. Bharat Forge shares on Friday ended at Rs907.40 apiece on the BSE, up 0.91 from previous close.