MCIE to acquire Aurangabad Electricals
It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes
CIE Automotive’s Indian arm, Mahindra CIE Automotive (MCIE) said it will acquire the business of Aurangabad Electricals Limited (AEL) through acquisition of 100% equity shares for an enterprise value of Rs 8,756 million which includes a future deferred payment estimated up to Rs 622 million.
With more than 3,300 employees, sales of Rs 8,500 million and an EBITDA margin near 12%, AEL is a crucial supplier to a number of domestic and global two-wheeler and passenger car OEMs and Tier 1 companies.
It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes. AEL also has capabilities for machining, heat treatment, powder coating, assembly and leak testing, along with a modern tool room.
Ander Arenaza, CEO, MCIE, said, “This acquisition allows MCIE to enter the aluminium die casting technology. Its complementary product and customer mix leads to further diversification of the business portfolio of MCIE India, strengthening especially our presence in the two wheeler space. It has very good manufacturing processes and internal controls and is run by a capable team.”
Rishi Bagla, chairman & MD, AEL, said, “We are convinced that the partnership with MCIE and CIE will give the company a great boost and allow AEL to benefit from global best practices in aluminium die casting. With the proceeds of the transaction, the Bagla group will further develop its industrial activities and businesses.”