Bharat Forge has acquired the Swedish forgings manufacturer Imatra Kilsta AB in a rumoured all-cash deal worth INR2.5 billion (€45.5 million).

Imatra Forging Group is reportedly the world's leading manufacturer of front axle beams and is also the second largest crankshaft producer in Europe.

Bharat Forge, the second largest forgings company in the world, also said it would also take over Scottish Stampings, the Scotland based subsidiary of Imatra Kilsta.

The Sweden based manufacturer has manufacturing facilities at two locations, Karlskoga Sweden, & Ayr, Scotland.

BN Kalyani, chairman and managing director, BFL, said that it is an all-cash deal and that BFL has acquired 100% ownership interest in Imatra Kilsta AB, Sweden and Scottish Stampings, Scotland through a 100%-owned SPV with immediate effect.

This acquisition is in line with a series of acquisitions that Bharat Forge has undertaken in recent times starting with the acquisition of Carl Dan Peddinghaus Forge GmbH in 2003, followed by CDP Alumiumtechnik in 2004 and Federal Forge in 2005. The latest acquisition of Imatra will complete Bharat Forge's dual shore capability. According to the company, it can now produce all core products — crankshafts, beams, knuckles and pistons — in two locations worldwide and provide design & engineering and technology front-end support, close to customers for these products.

Bharat Forge said that the acquisition strengthened its position in the European commercial vehicle, diesel engine and passenger car industry through relationships with new customers.

The company also said that Imatra was a profitable concern.

Deepesh Rathore