Key Highlights

Precision Camshafts (PC) acquired 76% stake in MFT, Germany. MFT also supplies value added auto components such as Balancer Shafts, Camshafts, Bearing Caps, Engine Brackets and several non-engine Prismatic components. Its clients include names such as Volkswagen, Audi, Opel, Westfalia, Hatz, Suzuki, etc.

Mr. Guido Glinski, the Promoter of MFT will hold balance 24% stake in the company and will continue to be in charge of the business.

MFT has a turnover of around Rs 160 crore with Ebidta margin of around 13-13.5%. Volkswagen, Audi and Wesfalia accounts for around 65-70% of total sales of the company.

The acquisition was done using Ebidta multiple, however the acquisition value was not shared by the management due to confidentiality clause.

MFT has debt of around 5 M Euro.

MFT will increase customer base for PC. It will also add more products in company's basket as a whole to supply to various OEMs. MFT will serve as a base in Germany for PC and from there, PC will cater to the OEMs of entire EU market including UK.

India will act as a manufacturing base for MFT orders. Final machining will be completed in MFT's factories and from there the final supply to OEM will happen.

Expects lot of synergies in terms of margins. Aims to reach Ebidta margin of around 18% in next 2 years in MFT business. Also sales to some OEMs like Audi, Volkswagen will increase which will result in further synergies in costs.