Bharat Forge Limited (BFL) is set to acquire 100% shareholding of Walker Forge Tennessee LLC (WFT) through its US subsidiary, Bharat Forge America. The transaction is valued at $14 million, which will be funded through internal accruals & debt, the company said.
WFT is a leading supplier of complex, steel and high-alloy steel, engine and chassis components to a diverse group of customers across automotive and industrial sectors. WFT is expected to record revenues of $28 million in CY 2016 with a balanced revenue mix across the automotive and industrial sectors.
The finance & risk management committee constituted by the board of directors of WFT approved the acquisition. For BFL this proposed acquisition is focused establishing manufacturing footprint in North America and increasing product offering into the passenger car and commercial vehicle segments as well into industrial sectors such as construction & mining and allied industries. Baba N Kalyani, CMD, Bharat Forge, said the acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage their existing customer relationships while simultaneously enabling the company to address new end market segments and broaden the product portfolio.