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Omax Auto to acquire U.S. Co
By agencies
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Tuesday, 18 October 2005, 19:30 IST
NEW DELHI: OMAX Autos is joining the league of Indian auto components manufacturers that are acquiring companies in the overseas markets.
Omax auto is on the verge of acquiring an auto component firm in the U.S. The size of the deal is about $2.27 million. The company has appointed KPMG as advisor for the acquisition. The fund is likely to be raised by issue of securities abroad.
Omax auto currently manufactures sheet metal tubular and machined components for the automobile industry. According to the industry analyst, overseas acquisition would help the $12.18 million Omax to boost its export revenue. The companys exports have grown exponentially from about $0.07 million in the financial year 2003-04 to $0.34 million in 2004-05. The company is eyeing to double its exports figures in the current financial year.
Analysts point out that Omax plans to leverage on its relationship with Delphi and Tenneco to take advantage of the outsourcing boom and is working on increasing its share of business from these key clients.
Over the past few years the auto components companies in the West, has become the soft target for Indian companies to acquire. The Indian companies seeks them to expand and broad base their client portfolio. The last couple of years have seen about 12 such acquisitions. Recently, Bharat Forge acquired Imatra Kilsta AB of Sweden, along with its wholly owned subsidiary Scottish Stampings at a market estimated price of $5.68 million.