Bharat Forge Limited (BFL) directors have approved the proposed acquisition of 100% shareholding of Walker Forge Tennessee (WFT) through its US subsidiary, Bharat Forge America for US$14m.

Walker Forge Tennessee is a supplier of complex steel and high alloy steel, engine and chassis components to customers across automotive and industrial sectors.

WFT is expected to record revenues of US$28m in 2016 with revenue mix across automotive and industrial sectors. The transaction value is US$14m, which will be funded through internal accruals and debt.

The proposed acquisition is focused on establishing manufacturing footprint in North America and increasing product offering in the passenger car and commercial vehicle segments, as well into industrial sectors such as construction, mining and allied industries.

The proposed transaction will be consummated upon completion of certain conditions precedent and regulatory approvals.

“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,” said Bharat Forge chairman and MD, Baba Kalyani.