Mumbai, March 9: Amtek Auto will acquire the holding company of the UK-based GWK group, having a combined turnover of over Rs 900 crore.

The Gurgaon-based company today informed the stock exchanges that its board will meet on March 16 to consider the stake acquisition in GWK Group Ltd and its two wholly-owned subsidiaries, King Automotive Systems and Geo W King Ltd.

The acquisition is expected to enable Amtek to consolidate in the European markets with customers like BMW, Jaguar and Land Rover being added to its portfolio. The GWK group is involved in precision machining of forged steel, aluminium components and assembly of sub-systems and has two manufacturing plants in the UK.

Set up in 1985, Amtek Auto manufactures transmission and suspension components, gears and connecting rod assemblies. In the third quarter of the current financial year ended December 31, the company posted net sales of Rs 124 crore and a net profit of around Rs 16 crore.

Industry analysts said the proposed acquisition of GWK forms part of its growth strategy that includes buying units in the same line of business. Amtek Auto had earlier acquired a 14.8 per cent stake in Ahmednagar Forgings Limited at Rs 34.50 per share. In 2002, it also obtained a stake in Indsil Auto Components. Subsequently, Amtek acquired equity in New Smith Jones Inc, a US-based company manufacturing ring gears and flex plates.

The company has forged several collaborations with foreign companies over the years. These include a technical collaboration with Aizen Company Ltd of Japan and Ateliers Siccardi of France. It had also firmed up another joint venture for manufacturing fly-wheel ring gears and flex plates.