Ruia takes over troubled German auto parts maker Henniges
15 Dec 2009
The Ruia group, which controls Dunlop Tyres India and Jessop, announced yesterday that it has acquired the assets of bankrupt German auto parts maker Henniges Automotive Grefrath. Henniges had gone into liquidation in 2008 during the global economic crisis.
The Ruias have taken over 60 per cent of Henniges through a special purpose vehicle routed through a Mauritius-based investment company, Wealth Sea. Of the remainder, the German court-appointed administrator for Henniges holds 25 per cent, while 15 per cent is held by existing director Juregen Hein.
The Ruias have the option to acquire the court-held 25 per cent after three years, and could also buy the remaining 15 per cent from Hein after five years. The group will pay for its 60-per cent stake in three instalments over as many years.
Group chairman Pawan K Ruia said the group was looking forward to having an automotive sealing company in India using the technologies of global leaders. The Kolkata-based group had also acquired the UK-based Schlegel about a year ago. Both Schlegel and Henniges specialise in automotive sealing systems.
''Aspiring to be a global major in the business of manufacturing automotive sealing systems and an important player in the auto ancillary business, we have achieved a milestone by taking over the German company,'' Ruia told reporters in Kolkata.
Ruia did not disclose the financial details, but indicated that it would be a larger acquisition than Schlegel. "It is a 50-million euro company. Even in the last month, it had a turnover of over 4 million euros," he said.
