Biznextindia : Bharat Forge Limited has on Thursday announced that it has entered into a definitive agreement to acquire JS Autocast Foundry India Private Limited (JS Auto) for an undisclosed amount.
Bharat Forge will acquire JS Auto for an upfront consideration (based on enterprise valuation adjustments) plus fixed deferred payment at the end of 3rd year. The closing of the transaction is subject to customary closing conditions.
The acquisition will enable the Bharat Forge to expand its product portfolio in the industrial sector, customer base and manufacturing presence in south India. Post completion of the acquisition JS Auto will become a wholly-owned subsidiary of BFISL and a step-down subsidiary of the Company.
Established in 2004, JS Auto is a leading and a preferred supplier of critical machined Ductile Iron castings for the Wind, Hydraulic, Off-Highway and Automotive applications. Over the past 5 year, the sales of JS Auto has grown at a CA GR of 17.7%. JS Auto registered sale of Rs 259 crores in FY21.
“We are delighted to welcome the JS Auto team to Bharat Forge family and will look to leverage their capabilities, highly talented technical team and strong customer connect to aggressively grow our presence in the industrial casting space. JS Auto will accelerate our diversification journey and enable in addressing the Decarbonization opportunity. This acquisition along with the previous deal in the open die segment significantly broadens our presence, capabilities and product offerings in the industrial space” Mr. Amit Kalyani, Deputy Managing Director, Bharat Forge said.