Bharat Forge to acquire JS Autocast

The forging product supplier announced that it has entered into a definitive agreement to acquire JS Autocast Foundry India.

Established in 2004, JS Auto is a leading supplier of critical machined Ductile Iron castings for the wind, hydraulic, off-highway and automotive applications. Over the past 5 year, the sales of JS Auto has grown at a CAGR of 17.7%. JS Auto registered sale of Rs 259 crore in FY21.

Bharat Forge will acquire JS Auto for an upfront consideration (based on enterprise valuation adjustments) plus fixed deferred payment at the end of 3rd year. The closing of the transaction is subject to customary closing conditions. The valuation is not disclosed herein due to reasons of confidentiality, the company said.

The acquisition shall enable Bharat Forge to expand its product portfolio in the industrial sector, customer base and manufacturing presence in South India. Post completion of the acquisition, JS Auto will become a wholly-owned subsidiary of BF Industrial Solutions Limited ("BFISL") and a step-down subsidiary of Bharat Forge.

Amit Kalyani, deputy managing director, Bharat Forge commented, "JS Auto will accelerate our diversification journey and enable in addressing the Decarbonization opportunity. This acquisition along with the previous deal in the open die segment significantly broadens our presence, capabilities and product offerings in the industrial space."

Pune based Bharat Forge provides safety critical components and solutions for several sectors including automotive, power, oil and gas, construction & mining, rail, marine, defense and aerospace.

On a consolidated basis, Bharat Forge reported net profit of Rs 421.19 crore in Q3 December 2021 as against net loss of Rs 209.20 crore in Q3 December 2020. Net sales jumped 38.97% to Rs 2,394.68 crore in Q3 December 2021 over Q3 December 2020.

Shares of Bharat Forge tumbled 5.43% to Rs 666 on BSE amid a broader selloff.

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