What is in this article?:
- Amtek Auto Buys Neumayer Tekfor Group
- Wider markets for Indian auto parts producer
- Financial terms withheld
- Tekfor in creditor protection, remains intact
- Combined sales top $2 billion annually
India’s Amtek Auto Ltd. reached an agreement to acquire Neumayer Tekfor Group, a producer of automotive forgings headquartered in Germany and with nine plants and service centers in Brazil, India, Italy, Mexico, and the U.S. Its Tekfor Inc. operation in Wooster, OH, is a hot-forging plant producing precision automotive parts. The German company had sought creditor protection late last year, and was reviewing options for restructuring or reorganization.
The two companies have arrived at a purchase agreement that will be effective by the end of May, and includes all assets, patents, and real estate holdings, according to a statement by Neumayer Tekfor.
The financial terms will not be revealed until the takeover is completed, according to Arvind Dham, Amtek Group chairman.
"Five months after initiating protective shield proceedings, we have already achieved our key objectives,” according to two officials speaking for Neumayer Tekfor.
“Besides maintaining the group and individual sites, we have also ensured the best possible creditor satisfaction. This transaction is not only better for the creditors than any of the other restructuring options on the table, it is also the best solution for all concerned," stated restructuring expert Joachim Exner and Dr. Jan Markus Plathner, a court-appointed custodian.
The buyer explained that Tekfor is “highly complementary to Amtek Auto’s existing business and the group will benefit from global customer-related synergies.” As examples, Amtek Auto listed Tekfor customers that include Volkswagen Group, Fiat, SKF, BMW, Daimler and Ford.
“It also provides Amtek Auto with access to high-end technology processes, including Hatebur and warm and cold forging technology,” according to the buyer’s statement. Neumayer Tekfor operates several Hatebur precision hot-forming lines that produce automotive parts, like bevel gears.
Besides forging, Neumayer Tekfor operations offer engineering and design, heat-treating and surface treatment, specialty machining, and assembly services. Among its machining operations is a joint venture in India, Amtek Tekfor Automotive Ltd.
Tekfor emphasized that all of its locations would remain in operation, and more than 1,600 employees would be retained.