Sintex in automotive component acquisition

Sintex Industries Ltd recently announced that its unit has acquired 90 per cent in a German auto component maker Geiger Technik GmbH, at an enterprise value of Euro 35.6 million. This acquisition is expected to offer a market entry for Sintex in Germany - the capital of the European automotive market.

The company now has presence in both France and Germany, which are very crucial OEM bases.  Geiger makes precision plastic parts including fuel tank components, and is a market leader in coolant & brake fluid reservoirs. The company operates three plants in Germany, and another in Poland. It counts BMW, Daimler, Volkswagen and Siemens among its major clients.
The acquisition has been funded from the proceeds of an overseas bonds issue, raised earlier this year. In February, Sintex raised $ 225 million through overseas convertible bonds, mainly for overseas acquisitions.

Sintex has followed an acquisitive strategy to strengthen its Auto Plastics Division, which in turn has helped it build manufacturing capability in the US, Europe, Africa and India.

Its acquisitions in the past year include US-based Wausaukee Composites for $ 20.5 million, French firm NIEF Plastics for Euro 30.7 million, the auto plastics unit of Bright Brothers for Rs 149 crore and US firm Nero Plastics for $ 4.7 million.