Thaindian News

Kolkata, May 11 (IANS) Kolkata-based Ruia Group Wednesday announced it has entered into binding agreements to acquire two automotive sealing systems manufacturing companies in Europe.

The companies include Turkey-based Standard Profil AS and Germany-based Meteor Gummiwerke KH Badje GmbH and Co KG.

“We signed the binding agreements to acquire Standard Profil and Meteor on May 5 and 6 in London. We will buy 100 percent of the shares of the two companies. Closing of the deal will be as soon as possible,” Ruia Group chairman Pawan K. Ruia told reporters here.

“The acquisition agreement for Standard Profil has been done with Bancroft, a UK-headquartered PE Fund, while Meteor will be acquired from existing shareholders through a trustee,” he said.

Standard Profil has plants in Turkey, Bulgaria and South Africa, while Meteor has plants in Germany and Czech Republic.

Ruia said: “Standard Profil is a healthy company with a total revenue of 180 million Euro in 2010 and Meteor’s revenue was to the tune of over 220 million Euro in the same year.”

With these two acquisitions, the group will have a portfolio of four sealing system companies.

It bought Schlegel in the UK in 2008 and Germany-based GDX Automotive (now Draftex) in 2009.

The Group also has in its fold two more Germany-based companies - Gumasol Rubber Tec GmbH and Ruia Global Fasteners AG.

Stating that with the acquisitions of Standard Profil and Meteor, the group will have the total turnover of $1.6 billion, the chairman said: “After the acquisition we will be close to number one in Europe and number three or four in the world in automotive sealing segment.”

“After the acquisitions, the group will earn a turnover of $1.2 billion from its overseas operation,” he said.

Ruia also said that the group will set up a manufacturing plant in Pune with a total investment of Rs.100 crore.

The plant will be operational within nine months, he added.