Linde-Wiemann specialises in proprietary tech in areas such as hot forming, tubular assemblies and alternative materials like aluminium used for lighweighting in auto systems
JBM Group on Monday said it had acquired a majority stake in Germany-based auto components and assemblies manufacturer Linde-Wiemann Gmbh KG, a deal which will give the homegrown firm access to global markets and exposure to German technology. The acquisition is done through one of JBM’s flagship companies Neel Metal Products. People close to the development said the company acquired approximately 60% stake in Linde-Wiemann.
Linde-Wiemann, with revenues at $700 million and 17 manufacturing plants across eight countries, specialises in proprietary technologies in areas such as hot forming, tubular assemblies and alternative materials such as aluminium used for lighweighting in auto systems. The company generates a margin in the range of 5-10% and its customer base includes those of BMW, Volkswagen, Audi, Skoda, Porsche, Daimler and Ford.
Post-announcement, the JBM Auto share price rose over 8% to Rs 285 in morning trade and closed the day’s session at Rs 272.30, up 3.54%, on BSE.
Nishant Arya, executive director, JBM Group, said the buyout would include all manufacturing plants owned by Linde-Wiemann. “Linde-Wiemann is very strong in technology and we can use their core strength by deploying it in the domestic business,” he told FE, adding the latter’s expertise in electric vehicle components will help JBM in supplying to OEMs in India. The group has 40 manufacturing plants, four engineering and design centres across 18 locations, globally.
The financing of the deal has been done by ICICI Bank. With this acquisition, JBM Group aims its turnover to rise from $1.5 billion to $2.2 billion. “JBM and Linde-Wiemann will together focus on developing new products that contribute towards improving the safety and performance of vehicles through light-weighting, thereby increasing the product quality and minimising the time to market for OEMs,” Arya said.
Linde-Wiemann’s product portfolio includes cross car beams, bumpers, rocker panels and tubular assemblies etc. JBM Group manufactures auto components for passenger cars, two-wheelers, three-wheelers, commercial vehicles and farm and construction equipment. Portfolio of products includes chassis and suspension systems like axles, twist beams, lower control arms, subframes, exhaust systems, air tanks, fuel tanks and pedal boxes. It also manufactures bus as well as parts, accessories and maintenance contracts of the same.
During Q3FY19, JBM Auto posted 8% year-on-year (y-o-y) growth in its revenue. The net profit jumped 19% y-o-y. The company’s Q3FY19 revenue mix comprised of component division (84%), tool room (8%) and OEM division (8%).