Chennai, Dec. 26 (PTI): In a bid to strengthen its customer base in Europe, city-based Sundaram Fasteners Ltd will acquire Peiner Umformtechnik GmbH located at Peine in Germany.
The acquisition, to be completed on January 1, will provide Sundaram an added capacity to manufacture high-strength construction fasteners. “It is a part of our quest for globalisation,” said Suresh Krishna, CMD, Sundaram.
The 50-million-euro (approximately Rs 250 crore) Peiner, which manufactures standard and special fasteners for automobile, industrial and construction sectors, is a subsidiary of Textron Deutschland Beteiligungs GmbH.
Krishna did not disclose the cost of the acquisition. “It will be an all-cash deal through internal funding. The consideration payable by Sundaram is based on a formula agreed upon with Textron and will depend on the value of Peiner’s assets as on December 31.”
The transaction will provide Sundaram an important foothold in one of the largest auto markets in the world.