Mahindra CIE Automotive Limited to acquire Aurangabad Electricals Limited
Mumbai, Mar 12 (UNI) Mahindra CIE Automotive Limited (MCIE) said that its Board of Directors on Tuesday resolved to acquire the business of AEL through acquisition of 100 pc equity shares for an enterprise value of Rs 8756 million which includes a future deferred payment estimated upto Rs 622 mn.
Founded in 1985, Aurangabad Electricals Limited (AEL) is a market-leading manufacturer of automotive aluminum die casting products based in Aurangabad, India, with five manufacturing facilities in the country across Aurangabad, Pune and Pantnagar.
AEL has been promoted by the Bagla Group and has been led by Mr Rishi Bagla, who has made a significant contribution towards developing the aluminum die casting industry in India. Motilal Oswal has acted as the financial advisor to the Bagla Group during this transaction.
According to JesusMaria Herrera, Chief Executive Officer of CIE Automotive, "We welcome AELand team to the CIE family. We are very impressed by the business they have built and its sustainable and profitable growth. We believe that their integration in MCIE will provide important opportunities for both MCIE and AEL. This
transaction also reinforces CIEJs commitment to the Indian automotive market and is a new opportunity to further extend the CIE model of manufacturing excellence in India."
Ander Arenaza, Chief Executive Officer of MCIE, says "This acquisition allows MCIE to enter the aluminum diecasting technology.
Its complementary product and customer mix leads to further diversification of the business portfolio of MCIE India, strengthening especially our presence in the two wheeler space. It has very good manufacturing processes and internal controls and is run by a capable team."
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