Mumbai, Jul 23 (PTI) Dynamatic Technologies has sold its foundry business under the operating arm JKM Ferrotech, to Danblock Brakes India, which is the domestic subsidiary of US-based MAT Holdings, for a consideration of Rs 75 crore in an all-cash deal.
The Bengaluru-based Dynamatic Technologies is into precision engineering serving the automotive, aeronautic, hydraulic and security applications sector. JKM Ferrotech is its foundry business arm focused on the automotive sector with marquee clients such as Tata Motors, Hyundai, Ford, Renault, Daimler, and BMW among others.
The MAT Group has more than 10 plants in the country--all in the North and is being operated through Danblock Brakes India. The JKM Ferrotech acquisition marks its entry into the South, which is important given the dominance of auto manufacturing in and around Chennai.
"We have sold our automotive castings business subsidiary JKM Ferrotech to Danblock Brakes India for an all-cash consideration of Rs 75 crore," Udayant Malhoutra, managing director and chief executive of Dynamatic told PTI.
The stake sale, solely advised by the city-based investment banking firm Singhi Advisors, will allow Dynamatic to focus on enhancing its global aerostructure capabilities and focus on building world-class proprietary hydraulic products, he said.
Founded in 1973, Dynamatic has been a pioneer in the automotive sector and later it entered the aerostructure space. It is a tier-1 single-source supplier to marquee clients in the aerospace and defense businesses like Airbus, Boeing, Bell Helicopter and the state-owned Hindustan Aeronautics.
It is also into designing and building proprietary hydraulic products and is now the world's largest producer of hydraulic gear pumps for agricultural tractors.
The USD 2-billion MAT Group is into automotive components and operates more than 10 facilities in northern India alone and with the JFTL deal marks its entry into southern India, starting with Chennai, its chairman and chief executive Steve Wang said.
(This is an unedited and auto-generated story from Syndicated News feed, LatestLY Staff may not have modified or edited the content body)