Sintex acquires US firm for $20.5 mn

Sintex Industries has announced the acquisition of US-based Wausaukee Composites Inc (WCI), manufacturer of engineered composite components for original equipment manufacturers (OEMs) in an all-cash transaction.

The acquisition has been made through its US-based, downstream subsidiary, Sintex Holding US, Inc for a total enterprise value of $20.5 million.

Sintex shall acquire 81 per cent majority stake of Wausaukee in first tranche and the balance would be acquired subsequently based on an earn-out approach.

The acquisition has been undertaken by Sintex for expansion of its product portfolio as well as widening its presence in the auto components business both in India and the US.

Sintex plans to leverage its low cost manufacturing skills and technology in producing some of Wausaukee's products in India.

WCI has presence in sectors including medical imaging, mass transportation, electrical components, auto components and engineering plastics.

"The acquisition represents the commencement of our building a global presence in the international auto and electrical plastic accessories market. Wausaukee Composites Inc is a consistently profit-making company, with a portfolio of established products that have tremendous growth potential," said Amit Patel, Managing Director, Sintex Industries.