INDIA: Bharat Forge acquires Federal Forge for US$9.1m
Bharat Forge, the world's second largest forgings company, has acquired the US-based Federal Forge through its wholly owned subsidiary, Bharat Forge America Inc, in an all-cash deal at US$9.1m.
This is Bharat Forge's third major acquisition outside India. In December 2004, Bharat Forge had acquired CDP Aluminiumtechnik GmbH & Co KG. Earlier, in January 2004, the company had completed the acquisition of Carl Dan Peddighous GmbH (CDP), now renamed CDP Bharat Forge.
Federal Forge, located in Lansing, Michigan, manufacturers a variety of forged automotive components including control arms, links, steering knuckles and connecting rods. Its annual turnover is about US$60m with a workforce of 150. Its customers include ZF Lemforder (for General Motors) and Goodyear. The company had filed for protection under Chapter 11 of the US Bankruptcy Code in February 2004. The sale of the company was done after a successful renegotiation of the existing UAW contract.
The Federal Forge acquisition is significant as it gives Bharat Forge a manufacturing base in the US to help it grow internationally.
Deepesh Rathore / Tilak Swarup