Mumbai, June 25: Bharat Forge has acquired US-based Federal Forge in an all-cash deal worth $9.1 million. Federal Forge is engaged in the design and manufacture of complex forged steel components for the automotive industry.

Federal Forge was acquired through wholly-owned subsidiary Bharat Forge America Inc.

In February 2004, Federal Forge had filed for protection under Chapter 11 of the US Bankruptcy Code, Bharat Forge said in a letter to the bourses. The assets of Federal Forge have been acquired with effect from June 24, it added.

“The Federal Forge acquisition is a significant step towards implementing Bharat Forge’s strategy of expanding our global footprint and establishing a manufacturing presence in one of our largest markets ? the US,” B. N. Kalyani, chairman & managing director, Bharat Forge said.

The company plans to expand its ‘dual shore’ manufacturing base through strategically located complementary facilities around the world. While the first step was to establish a base in Europe, the next step was to pursue North America and China.

“The Federal Forge acquisition will enhance our market presence in the US, give us a strong foothold in the passenger car and light truck market and, most important, have a manufacturing base close to some of our largest customers,” Kalyani added.

Bharat Forge, the flagship company of the $1.25-billion Kalyani Group, is the world's second largest forging company.

The company had bought out CDP Aluminiumtechnik GmbH & Co KG of Germany in an all-cash deal worth euro 6.30 million. The acquisition marked the entry of the company into the fast-growing aluminium auto-component business. It also strengthened the company's position in the global passenger car and chassis component business.

Earlier, Bharat Forge had acquired the German operations of Carl Dan Peddinghaus GmbH and CO KG, which was since renamed as Bharat Forge GmBH.