Amtek Auto acquires UK firm's assets

The Gurgaon-based forging firm, Amtek Auto, has acquired the entire assets of the UK-based J L French's (Witham), a company engaged in manufacturing high pressure die casting (HPDC) aluminium for automotive application, for an undisclosed sum.

French's current sales revenue is $60 million with 60 per cent capacity utilisation. The facility has 18 HPDC lines having the capacity to generate sales of $120 million.

Amtek has been expanding its presence in the UK for the last few years. In 2005, it bought Halberg Guss (Bourne), one of the largest die-casters in the UK.

With French's acquisition, Amtek will now cater to clients such as Land Rover, Jaguar, Trellborg, Ford and PSA (Peugeot).

The acquisition is predominantly aimed at the European automotive industry. However, there are a number of alternative strategic markets, which could also be explored, the company said in a statement sent to the Bombay Stock Exchange (BSE).

The consolidated net profit of the company stood at Rs 120 crore during the third quarter ending March 31, 2007, a growth of 56 per cent as compared to Rs 77 crore in the previous year. In India, the company is the second largest forging company and is also a tier-I supplier to auto majors such as Maruti, Hyundai, Mahindra, Ford and Tata Motors among others.