Escenda, based in Gothenburg, is described as a ‘leader in product engineering and design for the country’s world leading automotive sector’. Tata said the company’s proven product development knowledge and history working with leading manufacturers will help deepen Tata Technologies‘ expertise, facilities and capabilities with key partners in Sweden.
Tata Technologies says it has taken the step to expand its presence in Sweden due to the strong growth opportunity in the region in both the automotive and industrial machinery sectors. The automotive industry in Sweden is the country’s largest industry, employing half a million people and representing 12% of total country exports.
Escenda has more than 150 engineers and the company’s revenue has grown by approximately 230% across the last four years. The company has a long relationship with Volvo Cars.
Following the acquisition, Escenda Engineering AB is to be established as a 100% subsidiary of Tata Technologies Europe Limited. The company will maintain the same management team and full workforce under the new ownership.
The acquisition is an essential component in Tata Technologies’ European growth strategy and follows the recent $26mn (SEK234mn) investment in the development of a new European Innovation and Development Centre in the UK.
Nick Sale, Chief Operating Officer of Tata Technologies Europe, said: “Tata Technologies is always looking to evolve, innovate and ultimately grow our value proposition with our most important customers.
“Our new colleagues are some of the world’s finest engineers and we are united by a shared vision to bring better products to market for our customers and for the millions of people around the world who benefit from them.
“The acquisition of Escenda will boost our capacity in the Nordics as well as our capabilities in the automotive sector, where we already support a range of global OEMS. We look forward to offering our customers the added breadth, depth and local footprint that our combined entities provide.
“The acquisition is a transformational development in an important growing European market. It showcases our ability, confidence and commitment to continue to grow and enhance our operations across Europe.”
Stefan Wedin, Chief Executive Officer of Escenda Engineering AB, said: “We are delighted to become a part of the Tata Technologies’ family and support their ambitious growth strategy in Europe. We look forward to working together and supporting pioneering projects through our combined deep industry knowledge and innovative approaches to product development.”