Ruias to buy Turkish automotive sealing company

Our Bureau Kolkata | Updated on May 10, 2011 Published on May 10, 2011

Mr P. K. Ruia

The Ruia group has finalised acquisition of Turkey-based automotive sealing manufacturing firm — Standard Profil AS — at an undisclosed price. A deal in this regard was sealed with Turkey based Bancroft PE last evening.

The €180-million (approximately Rs 1,100 crore) company has production facilities in Turkey, Bulgaria, South Africa and China.

This is Ruias' third overseas acquisition of sealing makers after Schlegel in the UK in 2008 and Grefrath (Germany)-based GDX Automotive (now Draftex) in December 2009.

This is the Group's fifth overseas acquisition. The acquisition has also allowed Ruias entry into East European market.

In March, Mr Juergen Hein, Managing Director of Draftex, indicated to a group of visiting Indian journalists in Grefrath that acquisition of Standard Profil would strengthen the Ruia Group's presence in the automotive sealing market in Europe. Standard's client list includes Fiat, General Motors, VW and Audi and almost all other major automakers in Europe.

Interestingly, as indicated by Mr Hein, unlike Ruias' previous acquisitions of sick companies in Europe, “Standard is a healthy company”. Ruias acquired Draftex, solid tyre maker Gumasol and four German automotive fastener manufacturing facilities of Acument Global Technologies (now Ruia Global Fastener) from the insolvency administrators.

EYES More acquisitions

Mr Hein earlier indicated that apart from Standard, Germany-based Saargummi and Meteor Sealing systems could be acquisition targets. Unconfirmed sources suggest that Ruias' are in discussions with regard to Meteor's European operations.

While comments were not available from the Group Chairman, Mr P.K. Ruia, a press release issued by Standard Profil said a Bancroft Private Equity-led consortium has entered into “a binding agreement to sell 100 per cent of Standard Profil A.S.” to the Ruia Group.

“The transaction is subject to standard antitrust approvals and is expected to close in the third quarter of 2011,” the release said.

The release also quoted Mr Ruia saying: “We are very excited to have signed a deal to acquire such a rapidly growing company. This acquisition is in line with the Ruia Group's strategy to consolidate the automotive sealing industry and its plan to emerge a global leader in the automotive ancillary industry. The addition of a market leader such as Standard Profil to the portfolio will accelerate the growth.”

“My management team and I are excited to continue the successful growth of our sealing business under the umbrella of the Ruia group and expand the services for our customers into new regions,” said Mr Andreas Engel, CEO of Standard Profil.

“We are proud of the success Standard Profil has achieved under our ownership. The transaction with Ruia Group will undoubtedly result in a winning combination,” said Mr Tamas Szalai, partner of Bancroft.

Bancroft Private Equity is a private equity firm investing in Central and Eastern Europe and Turkey.

Published on May 10, 2011
This article is closed for comments.
Please Email the Editor