The Finance and Risk Management Committee constituted by the board of directors of Bharat Forge Limited (BFL) has approved the proposed acquisition of 100 percent shareholding of Walker Forge Tennessee LLC (WFT) through its US subsidiary, Bharat Forge America.
Walker Forge Tennessee, LLC (WFT) is a supplier of complex, steel and high alloy steel, engine and chassis components to a diverse group of customers across automotive and industrial sectors. WFT is expected to record revenues of US $28 million in 2016 with a balanced revenue mix across the automotive and industrial sectors. The transaction value is US $14 million which will be funded through internal accruals and debt.
This proposed acquisition is focused on establishing a manufacturing footprint in North America and on increasing product offerings into the passenger car and commercial vehicle segments as well into industrial sectors such as construction and mining and allied industries. This will also enable Bharat Forge to expand its presence in North America. The proposed transaction will be consummated upon completion of certain conditions precedent and regulatory approvals.
Commenting on the proposed acquisition, Baba N Kalyani, chairman and managing director of Bharat Forge Ltd., said “The acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage our existing customer relationships while simultaneously enabling the company to address new end market segments and broaden the product portfolio."