core sector communique

Ruia Group signs 2 more acquisition agreements

Extends global footprint

Kolkata, May 11, 2011: The Ruia Group remains strongly in its path to becoming leaders in the auto ancillary segment and in extending its global footprint in this space. In this endeavour, lead by its chairman Mr Pawan K Ruia, the Ruia Group has entered into binding agreements to acquire two more automotive sealing systems manufacturers – the Istanbul (Turkey)-based Standard Profil AS and the Bockenhem (Germany)-based Meteor Gummiwerke KH Badje GmbH & Co KG.

These two acquisitions pushes the Ruia Group into leadership position in the automotive sealing systems segment.

Commenting on the development, Mr Ruia said: “These two acquisitions will be in line with our group's policy of moving into leadership positions in any field we enter. The new global footprints are also in line with out philosophy of gaining the best technology partners wherever we go. The Group is positioned now to accept greater challenges arising out of new markets and countries.”

These two acquisitions will give the Ruia Group a portfolio of four sealing system companies, the earlier buys being Schlegel in the UK in 2008 and Grefrath (Germany)-based GDX Automotive (now Draftex) in December 2009. The Group also has in its fold two more Germany-based companies: Gumasol Rubber Tec GmbH and Ruia Global Fasteners AG.

The acquisition agreement for the 1977-established Standard Profil has been done with Bancroft, a UK-headquartered PE Fund, while the 1954-established Meteor will be acquired from existing shareholders, through a Trustee.

Standard Profil will give the Ruia Group entry into new and burgeoning markets, such as Turkey, Bulgaria, and South Africa. Meteor will provide access to markets of the Czech Republic and the US.

                               

Standard Profil is a healthy company (3,500 employees) with revenues of Euros 180 million in 2010, while Meteor (2,450 employees) revenues are to the tune of over Euros 220 million.

In profitability Standard Profil is one of the leaders in sealing systems. The sealing systems business of the Ruia Group envisages huge upside in its profitability with the inclusion of Standard Profil.

The Ruia Group also envisages serving the Indian automotive companies and international automotive companies having and/or planning manufacturing base in India with best quality of automotive components because of its access to state-of-the-art technology brought through such acquisitions.