Auto components maker Pricol is acquiring Ashok Piramal Group company PMP Auto Components for an undisclosed amount, as it looks to expand in Europe and North American markets.
The board of Pricol has "approved the acquisition of PMP Auto Components," Pricol said in a regulatory filing. "Pricol and PMP Auto Components, India have entered into an exclusive and binding agreement for Pricol to acquire the entire ownership interest in wiping systems business of PMP", said Pricol.
Both the parties are working towards "executing definitive documentation and closure of this deal shortly", the filing said further.
The acquisition will give Pricol access to manufacturing locations in Europe and North America, where it does not have any footprint.
"This will enable Pricol to also manufacture its current product portfolio in these new geographies. With this acquisition, Pricol will increase its presence with the passenger vehicles manufacturers, thereby opening up future cross selling opportunities," the company said.
PMP, which has a turnover of Rs 250 crore, has manufacturing facilities in Czech Republic, Mexico and India. It supplies components to auto majors such as Volkswagen, Daimler, Fiat, John Deere, Skoda, Audi, Renault and Tata Motors.
"Pricol is acquiring the business as part of a long term product diversification strategy and believes that wiping systems is a growing product segment with India Czech Republic and Mexico serving as best cost manufacturing bases," the company said. Shares of Pricol were trading at Rs 77 on BSE, down 3.45 per cent from previous close.