The Chennai-based company says the acquisition will create one of the largest speciality casting groups in the world.
The Sanmar Group, an integrated industrial, shipping and engineering business house, has acquired North American firm Matrix Metals LLC, a portfolio company of Jefferies Capital Partners.
HOT DEAL
- MATRIX Metals LLC, which operates one of the largest steel casting businesses in North America, employs over 1,300 people.
- THE deal is funded by a bridge facility provided by Bank of India and State Bank of India.
- SANMAR Group has a steel casting capacity of 60,000 tonnes and about 50,000 tonnes capacity for premium iron alloy casting.
- THE company acquired German alloy castings producer Eisenwerk Erla GmbH last year.
Sanmar executives would not disclose details of the acquisition with respect to the cost or share purchase agreement between the two companies. The company said that the merger will create one of the leading specialty steel casting groups in the world. The deal, which was announced early today, is the result of a close association between the Sanmar Group, headquartered in Chennai, and Matrix?s NEPCO unit, which has sourced castings from Sanmar for many of Matrix?s important customers over the years. ?Combining Sanmar?s expanding foundry capacity with ours will enable us to meet almost any North American customer?s casting requirements and create new business opportunities across the combined companies,? Roger Courtney, CEO, Matrix, said in a statement. According to company sources, the transaction has been funded by a bridge facility provided by branches of Bank of India and State Bank of India in New York. The banks will also provide long-term funds, they said. Following the merger, Sanmar Group Corporate Director B Natraj will relocate to the US and serve as executive vice-chairman of Matrix.
The group?s first priority will be to reinforce Matrix?s sales and marketing efforts in the US and serve a broader range of global customer casting requirements, Natraj said.
?We plan to supplement Matrix?s established foundries in Keokuk, Houston and Mexico with our expanded operations in India to meet those needs,? he said.
Matrix Metals employs over 1,300 people and operates one of the largest steel casting businesses in North America.
The $157 million company has foundries in Keokuk, Iowa, Richmond, Texas and San Juan del Rio, Mexico, which focus on castings for flow control, locomotive, mining, farm equipment, heavy construction and oilfield equipment sectors.
Sanmar acquired German alloy castings producer Eisenwerk Erla GmbH in 2007. This, together with a greenfield site in Chennai for iron alloy castings, will offer its major automotive customers a choice of simple and complex iron castings to meet their varied needs. The group has an annual steel casting capacity of 60,000 tonnes and about 50,000 tonnes of capacity for premium iron alloy casting. It is investing over $26 million (about Rs 100 crore) to further expand its foundry capacity in India from 10,000 tonnes to 30,000 tonnes a year, by adding three automated lines for sand castings. The steel foundry business includes an investment foundry with a capacity of 1,200 tonnes and a state-of-the-art machine shop.本文转自：China Industry News
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