Bharat Forge is the world’s largest forging company.
Indian automotive component company Bharat Forge, (BFL), on Friday, announced the acquisition of US-based Walker Forge Tennessee LLC (WFT) through its US subsidiary, Bharat Forge America. The acquisition is valued at $14 million which will be funded through internal accruals and debt.
The Finance and Risk Management Committee constituted by the Board of Directors of Bharat Forge Limited has approved the proposed acquisition of 100% shareholding of Walker Forge Tennessee LLC. Bharat Forge is aiming to establish its footprint in North America along with increasing market presence in different sectors, reported Business Standard.
“This proposed acquisition is focused establishing manufacturing footprint in North America and on increasing our product offering into the Passenger Car and Commercial Vehicle segments as well into industrial sectors such as Construction & Mining and allied industries. This will also enable us expand our presence in North America,” said the company in a press release.
The proposed transaction will be consummated upon completion of certain conditions precedent and regulatory approvals.
The world’s largest forging company, Bharat Forge, has a presence in many sectors, including automotive, power, oil and gas, rail, marine, aerospace, and construction and mining. It is the largest supplier of automotive components from India. So far, Bharat has acquired seven companies; four in the Europe, two in North America and one in China. It owns five foreign companies now as one each in North America and China was sold later.
Walker Forge Tennessee, LLC (WFT) is a leading supplier of complex, steel and high alloy steel, engine & chassis components to a diverse group of customers across Automotive & Industrial sectors.
Commenting on the proposed acquisition, Baba Kalyani, Chairman and Managing Director of Bharat Forge Ltd., said: “The acquisition of Walker Forge Tennessee creates a strategic manufacturing footprint in North America to leverage our existing customer relationships while simultaneously enabling the company to address new end market segments and broaden the product portfolio.”