Amtek Auto to buy Japan-based Asahi Tec's iron casting, forging & machining business

Amtek Auto Limited (AAL) on April 27, 2015 entered into an agreement with Japanese firm Asahi Tec Corporation to acquire its various group companies which are engaged in the business of iron casting, forging and machining. Asahi Tec Corporation is a portfolio company of Unison Capital, a leading private equity firm based in Japan.
 
The acquired business, which recorded revenues of $ 375 million for the year ended March 2015, comprises three manufacturing facilities in Japan, two in Thailand and a strategic holding in a joint venture in China. Key products include cylinder blocks, crankshafts, front axle beams, cylinder heads, turbocharger housings and other engine and suspension related components. The primary end markets for products include the commercial vehicle and passenger car segments and the construction equipment sector. The business has over 1,500 employees across all locations.
 
John Flintham, Global CEO of Amtek Group, said, “The addition of world class casting and forging technologies not only complements Ahmednagar Forgings’ and Amtek India’s businesses, but also strengthens our position as one of the world’s most technically advanced automotive component manufacturers in our chosen markets. The acquired business is a long established, reputed supplier to some of the high profile Japanese OEMs who are focused on the attractive South East Asian region as well. The transaction is highly transformational and adds a new dimension to our global manufacturing platform whilst enabling us to continue to enhance shareholder value. The Amtek Group is now a truly global organisation with a strong manufacturing presence in all three major continents.”
 
The acquired business has long standing relationships with blue chip OEM customers including Caterpillar, Hino Motors, Mitsubishi Fuso, Mitsubishi Heavy Industries and Mitsubishi Motors. The acquisition provides a strategically compelling manufacturing platform with access to additional high profile OEMs in new regions.
 
“The product portfolio of the acquired business is highly synergistic to that of the Amtek Group with a focus on engine, suspension and non-auto hydraulic components. Access to highly advanced technologies for front axle beams and crankshafts will be complementary to Ahmednagar Forgings’ existing business. In addition, the high end technology and manufacturing capabilities for block and head castings will be synergistic with Amtek India’s casting operations,” said Amtek in a press release.
 
The transaction provides the Amtek Group with further revenue opportunities particularly from the commercial vehicle and construction equipment segments. The acquired business also further strengthens Amtek Auto’s existing leading position in the attractive high growth turbocharger market.