Ruia Group acquires German automotive fastener firm, Acument GmbH

Kolkata: The Ruia Group has acquired Germany-based automotive fasteners manufacturer, Acument GmH & Co KG, from US-based Acument Global Technologies Inc. With the acquisition of Acument's plants in Neuss, Beckingen, Neuwied and Schorzberg and its logistic centre in Koln in Germany, the Ruia Group has incorporated a new company - Ruia Global Fasteners AG (RGF).

According to Pawan K. Ruia, chairman of the Ruia Group, the group would invest approximately 4 million Euro in the company. He expects the company's turnover to be around 200 million Euro this year.

The acquisition was funded partly by internal accruals and rest was by three years sellers' credit.

Acument GmH & Co had a turnover of 227 million Euro in 2010. In 2008 following the global economic meltdown the company incurred a loss of 40 million Euro. Due to this Acument's board of directors had filed for insolvency in 2009. The company had posted a turnover of 800 million Euro before insolvency.

Robin Kendrick, former Vice President and General Manager of Acument Europe is now president and CEO of Ruia Global Fasteners Ltd.

The company has a 15 percent of market share in the fastener segment in Europe.

Pawan K. Ruia said that he had no intentions of shifting the operations to India. However, based on demand, the group may decide to locate additional manufacturing units in India.

This acquisition is expected to help the company tap opportunities during the next boom in the automotive market, which is projected to grow five times in India by 2020.

The Ruia Group had acquired Schlegel Automotive Europe Ltd in 2008, Draftex Automotive GmbH in 2009 and Gumasol Rubber Tec GmBH in 2010. This is the group's third acquisition in Germany.

This year the group is targeting a turnover of 335 million Euro (20.534 billion Indian rupees), of which 50 percent is contributed by it's overseas operations.

Source:-http://machinist.in/index.php?option=com_content&task=view&id=3101&Itemid=1