The Amtek Group is one of the world's largest manufacturers of iron-cast auto components and the acquisition of the Kuepper Group, a supplier of machined castings with operations in central Europe and key clients such as BMW, Renault Nissan and Volkswagen, would serve as synergistic for the Indian company.
We paid about 50 million euros for Kuepper, or about 3.5 times EBITDA.
John Flintham
Sr MD & CEO
Amtek Auto
Shares in Amtek India and parent Amtek Auto jumped about 6 percent each in early Mumbai trading as the former informed the bourses Tuesday it had completed the acquisition of Germany's Kuepper Group it had announced in December.
The Amtek Group is one of the world's largest manufacturers of iron-cast auto components and the acquisition of the Kuepper Group, a supplier of machined castings with operations in central Europe and key clients such as BMW, Renault Nissan and Volkswagen, would serve as synergistic for the Indian company.
Also read: Amtek India & Amtek Auto up 20%; Kuepper buyout completed
In a previous successful acquisition, Amtek had early last year bought Neumayer Tekfor for an estimated 500 million euros.
The Amtek Group has seen strong financial performance recently, helped by the Neumayer acqusition. In the December quarter, Amtek India's revenues jumped 60 percent year-on-year to Rs 665 crore while operating profit surged 63 percent to Rs 204 crore. While Amtek Auto notched up profits of Rs 267 crore (up 55 percent) on revenues of Rs 898 crore (up 57 percent).
"We are now very strong in Europe. About 45 percent of our revenues now come from outside India and a big chunk of that comes from Germany," Amtek Auto Senior MD and CEO John Flintham told CNBC-TV18's Latha Venkatesh and Sonia Shenoy in an interview.
The Kuepper Group has revenues of about 170 million euros and operating profit margin of about 8 percent. "We paid about 50 million euros for the company, or about 3.5 times EBITDA," Flintham said.
Amtek's immediate priority will be to work out synergies between Kuepper, which has five plants across Germany and Hungary, and its existing facilities in Germany, he added.
The CEO added that post the acquisition, the group can be expected to clock consolidated full-year revenues of about Rs 15,000-16,000 crore. "[But] obviously the EBITDA [in the European businesses] is lower than the EBITDA in India. On balance, we will be looking somewhere in the region of 19-20 percent EBITDA margins before this financial year."
Amtek Auto shares have about doubled in the past five years while the Amtek India scrip has increased about five times on the back of a manifold increase in sales and net profits for both firms.
Amtek India stock price
On February 24, 2014, Amtek India closed at Rs 61.70, down Rs 1.85, or 2.91 percent. The 52-week high of the share was Rs 108.45 and the 52-week low was Rs 49.00.
The company's trailing 12-month (TTM) EPS was at Rs 7.66 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 8.05. The latest book value of the company is Rs 80.41 per share. At current value, the price-to-book value of the company is 0.77.
via Business - Google News http://ift.tt/1os7Cqa
Put the internet to work for you.
0 comments:
Post a Comment