Auto-components maker Precision Camshafts acquires German firm MFT
Auto-components maker Precision Camshafts Ltd has acquired a 76% stake in Germany-based precision machinist MFT Motoren und Fahrzeugtechnik GmbH in an all-cash deal.
The value of the deal is not disclosed.
Precision Camshafts picked up the stake through its wholly-owned Dutch subsidiary, PCL (International) Holding B.V, it said in a stock-exchange disclosure.
The acquisition will help Precision Camshafts expand its customer and manufacturing bases and product lines in the European market, it said.
As per the agreement, Precision Camshaft may acquire the remaining 24% stake in MFT Motoren und Fahrzeugtechnik (MFT) in financial year 2021 based on MFT’s performance in financial year 2020.
Guido Glinski, managing director of MFT, holds a 24% stake in the company. He will continue to lead MFT’s operations.
Yatin Shah, chairman and managing director of Precision Camshafts, said the acquisition of MFT will open up synergetic opportunities for the company through fresh product offerings.
MFT will not only complement Precision Camshafts’ relationships with current original equipment manufacturers but will help enhance its customer base, he said.
Glinski said the partnership with Precision Camshafts will allow MFT to get better access to the development departments of the German and European car manufactures.
Saxony, Germany-based MFT is a manufacturer of camshafts, balance shafts and prismatic components. The company operates a production facility at Cunewalde in Saxony.
Precision Camshafts has foundries and machine shops at Solapur in Maharashtra. The company supplies camshafts to original equipment manufacturers including Ford Motors, General Motors, Toyota, Maruti Suzuki, Hyundai, Daimler and Porsche.
Precision Camshafts got listed in February 2016. The company raised about Rs 410 crore through its initial public offering.
In October 2017, Precision Camshafts acquired a 95% stake in Nashik-based MEMCO Engineering Pvt. Ltd for Rs 38.04 crore ($5.8 million).