Bharat Forge to buy US-based Walker Forge Tennessee
19 Nov 2016
Auto components major Bharat Forge today struck a deal to buy US-based Walker Forge Tennessee LLC for $14 million (Rs95 crore), in order to expand its product portfolio in automotive and other industrial segments.
The deal comes a year after Bharat Forge acquired France-based Mecanique Generale Langroise for €11.8 million. (See: Bharat Forge acquires French company Mecanique Generale Langroise for about Rs90 crore)
Bharat Forge is carrying out the acquisition through its US-based subsidiary, Bharat Forge America.
The Pune-based company intends to fund the transaction through internal accruals and debt.
Walker Forge 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 company is expected to record revenues of $28 million in 2016 with a balanced revenue mix across the automotive and industrial sectors.
Bharat Forger said that the proposed acquisition is focused establishing manufacturing footprint in North America and on increasing our product offering into the passenger car and commercial vehicle segments as well into industrial sectors such as construction and mining and allied industries.
The deal will also allow Bharat Forge to expand its presence in North America.
Commenting on the proposed acquisition, Baba Kalyani, chairman and managing director of Bharat Forge, said ''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.''