Ashok Leyland sells Defiance Testing & Engineering to Exova

Hinduja Group flagship firm, Ashok Leyland today said it is has sold its testing and engineering services arm, Defiance Testing & Engineering Services (DTE) to US-based Exova for an undisclosed sum.

Commenting on the sale, Ashok Leyland Vice Chairman V Sumantran said: "It is reflective of Ashok Leyland's dynamic shift in strategic priorities aimed at enhancing the value of its business in the medium term."

DTE, located near Detroit, was acquired by Ashok Leyland in 2007. It provides testing and engineering services to manufacturers and suppliers in the passenger car, light truck, bus and military vehicle sectors.

Since its acquisition, DTE has not only weathered the downturn of 2008-2009, it has also seen consistent and profitable growth since through a combination of operational efficiency, new customer capture, and focus on adjacent sectors such as construction and off-highway and defence, Ashok Leyland said in a statement.

Ashok Leyland's separate entity focused on IT and Engineering Services namely Defiance Technologies Ltd remains unaffected by this transaction, it added.

In a separate statement, Exova said the move will add five specialist testing facilities and 75 personnel to Exova's existing network of over 3,500 experts, and makes the company one of the leading providers of transportation testing services in North America.

"By bringing together the Defiance team with our transportation experts in Warren, Michigan and Mississauga, Canada we are now well placed to extend our range of capabilities and the number of customers we can support," Exova Chief Executive Officer Ian El-Mokadem said.

Formed in 1976, DTE has grown to be one of the largest independent testing companies in the automotive transportation market. It supports over 180 customers, and is recognised as a preferred preferred supplier to the world's leading automotive manufacturers and Tier 1 and 2 suppliers, Exova said.

DTE's range of capabilities also include component and system testing, fatigue and durability validation, system simulation, and full vehicle structural testing.