Kolkata, July10 The city-based Mr P. K. Ruia-promoted Ruia Group has acquired 100 per cent control in the Metzeler Automotive Profile Systems UK Ltd — manufacturer of synthetic rubber-based sealing components for global automobile brands — from CVC Capital Partners company at an undisclosed sum.
Metzeler Automotive Profile Systems UK Ltd was a part of the Metzeler conglomerate, which was sold in parts to various companies across the globe.
Following the acquisition by the Ruia group, Metzeler Automotive Profile Systems UK Ltd has changed name to Schlegel Automotive, UK and plans to enter the automotive sealing market in the country through Schlegel Automotive India Pvt Ltd.
According to Mr P. K. Ruia, Schlegel Automotive India Pvt Ltd has an investment roadmap of $15 million in setting up the extrusion and finishing lines. Though the location of the factory is yet to be finalised, Chennai tops the preference list.
“Such facilities require relatively small piece of land. Naturally we do not foresee any problem in acquiring them. We have already placed orders for equipment of the proposed Indian facility, which would be set up shortly,” he said.
Meanwhile Schlegel Automotive, UK has also been augmenting capacities at a total investment of $6-7 million. The project includes setting up new extrusion lines.
Founded in 1952, Schlegel’s rubber-based sealing systems — used in doors, windows, hoods (bonnets), trunks (boots) and sunroofs of cars — are used by automakers like Ford, Toyota, Nissan, Honda, BMW, Saab. The company has posted a negative EBITA of £0.6 million during the last fiscal on a turnover of £28.5 million. Net asset value is £30 million.
According to Mr Ruia, the acquisition was done through a SPV — Global Finvest Ltd incorporated in UK and controlled by the two investment arms of the group. Though Global Finvest first completed the acquisition, part of the acquisition ($12 million) cost was later financed by State Bank of India.