Dynamatic Technologies through its wholly owned subsidiary, JKM Erla Automotive has acquired Eisenwerke Erla Gmbh, Germany. The financing for the transaction was advised and arranged by DBS Bank, India.
Eisenwerke Erla GmbH generates revenues in excess of Euro 100 million between its two units located in Germany and India.
The potential advantages of the acquisition are; the company will become global player in the exhaust and turbocharger segments of the automotive industry. It will get manufacturing locations in Europe and Asia. The company will get experienced management team. The acquisition will provide the company 100% ownership of one of finest ferrous foundries in Europe, capable of manufacturing extremely intricate ferrous castings, from difficult-to-cast materials. The company will also get marquee customers in the Automotive and Turbocharger markets.
Earlier, on May 07, 2011, the company had announced the demerger of the Automotive Business of Dynamatic Technologies into JKM ERLA Automotive. With this acquisition, the company will become a global player in the design, development and manufacture of high precision, complex metallurgical products for automotive engines and turbochargers.
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