India based Ruia Group acquires Germany based automotive fasteners manufacturer, Acument GmH & Co KG

India based Ruia Group Thursday announced the acquisition of Germany automotive components maker Acument GmH & Co KG. The Kolkata based Ruia Group acquired the Germany fasteners manufacturer from US based Global Technologies Inc.

The investment gives Ruia Group control over Acument's plants in Neuss, Beckingen, Neuwied and Schorzberg and its logistic centre in Koln in Germany. The investment as well resulted in a new Ruia entity named Ruia Global Fasteners AG (RGF). The deal which would be funded by internal accruals and three years sellers credit, will extend Ruia group's global presence in the auto ancillary segment. 

Ruia is to invest an estimated €4 million in the firm and has assured employees of Acumen that none of the German sites would be relocated to India. Robin Kendrick, former Vice President and General Manager of Acument Europe is now president and CEO of Ruia Global Fasteners.

Acument produces a wide range of high precision fasteners like long shafted bolts, hexagonal screws, nuts and forged parts. The company has 15% market share in fastener segment in Europe. The Germany firm has been performing poorly, its woes marked by falling profits, partly due to the global economic meltdown that hit the firm.

The 2008 global economic crisis saw Acument incur a loss of €40 million, forcing it to file for insolvency in 2009. Prior to insolvency, the company had posted a turnover of €800 million. In 2010, Acument GmH & Co had a turnover of €227 million.
For the Indian group however, the latest Germany acquisition marks its third investment in the EU member state. In 2009, it acquired Draftex Automotive GmbH and in 2010 acquired Gumasol Rubber Tec GmBH. The group has also acquired Schlegel Automotive Europe Ltd in 2008.

The Ruia Group has two segments Infrastructure and Heavy Engineering, and Auto Ancillary, which includes Tyres. Ruia group entered into the tyre industry in 2005 with the acquisition of Dunlop India and Falcon Tyres. In 2007, it acquired Mumbai-based Monotona Tyres and in the same year it bought controlling stakes in Malaysian electronics company Industronics Berhad.

Exports from the auto component industry are estimated to be worth US$ 5 billion in 2010-11. Europe is likely to account for 36.9% of India's auto components exports in 2010-11, followed by Asia with 28.1% and North America with 24%.

25 feb 2011

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