Commercial Vehicle Group’s Indian unit, CVG Seating (India) has acquired seat assembly assets of Vijayjyot Seats which has three leased facilities in the Baska (State of Gujarat), Pune (State of Maharashtra) and Dharwad (State of Karnataka) regions of India and employs approximately 108 full time workers and some temps in total.
The acquired business supplies seats for passenger, school and coach bus markets in India and its top four customers are Tata Motors, Tata Marcopolo, Ashok Leyland and Volvo/Eicher.
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“This acquisition is an ideal match for our strategic plan of growth and expansion into the India commercial vehicle market and complements our existing initiatives in the construction and truck markets of India,” said Mervin Dunn, president and CEO of Commercial Vehicle Group.
Vijayjyot Seats will continue as a stand-alone business as a supplier of materials and components for other customers and markets in India, as well as a supplier to CVG India for the acquired seat business.
Total upfront cash consideration for the transaction was approximately US$13.7m with an additional maximum earn-out potential of up to approximately $1.9m based on EBITDA performance during the first two years of the acquisition.
For full year 2013, CVG expects the acquisition to achieve revenues of approximately $28m and operating income of approximately $1.4m.
