BiznextIndia : CIE Automotive’s India arm , Mahindra CIE’s Board of Directors today resolved to acquire the business of Aurangabad Electricals ltd (AEL ) through the acquisition of 100% of equity shares for an enterprise value of INR 8756 million ( Rs. 875.6 crore ) which includes a future deferred payment estimated upto INR 622mn.
Founded in 1985, AEL is a market-leading manufacturer of automotive aluminium die casting products based in Aurangabad, India, with five manufacturing facilities in the country across Aurangabad, Puneand Pantnagar. AEL has been promoted by the Bagla Group and has been led by Mr. Rishi Bagla, who has made a significant contribution towards developing the aluminum die casting industry in India. Motilal Oswal has acted as the financial advisor to the Bagla Group during this transaction.
With more than 3,300 employees, sales of- INR 8,500mn and an EBITDA margin near 12%, AEL is a crucial supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier 1 companies. It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes. AEL also has capabilities for machining, heat treatment, powder coating, assembly andleak testing, along with a modern tool room.
“We welcome AEL and team to the CIE family. We are very impressed by the business they have built and its sustainable and profitable growth. We believe that their integration in MCIE will provide important opportunities for both MCIE and AEL. This transaction also reinforces CIEJs commitment to the lndian automotive market and is a new opportunity to further extend the CIE model of manufacturing excellence in India” Said JesusMaria Herrera, Chief Executive Officer of CIE Automotive.