The Kolkata-based Ruia group on Monday announced the acquisition of the 134-year-old automotive fastener manufacturing business of Acument GmbH &Co. KG of Germany for an undisclosed sum. The all-asset-deal includes acquisition of four manufacturing facilities and a logistics centre in Germany; employing 1,312 people.

The Neuss (near Düsseldorf) headquartered Acument Germany, which went into insolvency in August 2009, was earlier a part of the US-headquartered Acument Global Technologies, Inc.

Ruia Group formed a joint stock company, Ruia Global Fasteners AG, promoted by its Mauritius-based investment arm Wealthsea Ltd to take over the German company. The deal would be financed from internal accruals and three years sellers' credit.

Acument caters to automobile majors such as Volkswagen, Daimler, GM, TRW, MAN, Brose, Ford and SAS and controls 15 per cent of the automotive fastener market in Germany. The German company posted a turnover of approximately (Euro) 227 million (nearly Rs 1,400 crore) in 2010.

Consolidation in auto ancillary

This is the Ruia group's third acquisition in Germany and fourth in Europe in the last two years. The group previously acquired Gumasol-Werke, Dr. Mayer GmbH & Co (August 2010) and Draftex Automotive GmbH (in 2009) in Germany. The group started its foray in Europe by acquiring the UK-based Schlegel Automotive Europe Ltd in 2008.

According to the Chairman, Mr Pawan K. Ruia, including the latest acquisition, the group's European business generates a total revenue of approximately Euro 335 (over Rs 2,000 crore). The total group turnover is pegged at Rs 4,500 crore.

Tapping auto boom

Reiterating the huge growth potential of the Indian automobile sector during the next decade, Mr Ruia said that the acquisitions have earned the Ruia group access to technology and an impressive list of clients.

“It is anticipated that our clients will enhance their attention on the Indian market, offering us further opportunity to grow,” he said.