Bharat Forge acquires French company Mecanique Generale Langroise for about Rs90 crore
02 Jan 2015
Auto component maker Bharat Forge has acquired French oil and gas machining company Mecanique Generale Langroise (MGL) for about Rs90 crore (€11.8 million). The acquisition was done by the Pune-based company's German subsidiary CDP Bharat Forge GmBH.
Saint Goesmas-based MGL supplies turnkey components for drilling application such as blow out preventers, surface and sub-sea well heads in addition to components for the power sector. It primarily caters to oil and gas customers.
The acquisition will help Bharat Forge consolidate its position in the oil and gas space by enhancing service offerings and geographical reach. This also brings the Indian company closer to its customers and increases the value addition provided to them, the company said in a statement.
It is the first among many opportunities that Bharat Forge is looking in North America, the North Sea area and the Middle East, it added.
''The acquisition of MGL is in line with our strategy of moving up the value chain in the industrial business. This acquisition enhances Bharat Forge's ability to provide turnkey solution and simultaneously strengthens the product offering in the oil & gas sector,'' said Baba N Kalyani, chairman and managing director of Bharat Forge.
On Friday, Bharat Forge's share prices ended up 0.56 per cent at Rs944.10 on a strong BSE, which closed up 1.38 per cent.
