Bharat Forge Ltd. (BFL), India’s largest exporter of auto components announced a major acquisition of Carl Dan Peddinghaus GmbH (CDP), one of the largest forging company in Germany. The Memorandum of Understanding (MOU) between BFL and CDP was signed in Ennepetal near Dusseldorf, Germany on the evening of Friday, November 21, 2003. With this acquisition BFL will emerge as the 2nd largest forging company in the world.
In an Asset Purchase Deal, BFL will be acquiring 100% of the Fixed Assets, Inventory, and business of CDP, Germany, through suitable SPV, with effect from January 1, 2004. The deal will be funded through internal accruals.
A blue chip manufacturing company, CDP was founded in 1839 and to this day remains one of the premier forging company’s in the world. The company is headquartered in Ennepetal near Dusseldorf, has a second facility in Daun and currently employees 790 people. It is a profitable enterprise and recorded sales of Euro 116 million for the year ended December 31, 2002. CDP is a major supp lier of critical chassis components to leading automakers like BMW, Volkswagen, Audi, Daimler Chrysler, and Volvo among others. The company is known for its deep cu stomer relationships and provides end-to- end solutions based upon its extensive technology, product design, and product development expertise.
Commenting on the acquisition Mr. Baba Kalyani, Chairman & Managing Director, Bharat Forge said, “CDP acquisition rein forces our long term growth strategy of expanding both organically and inorganically. This will help BFL strengthen and expand its business in Europe thru the addition of prestigious new customers, and build new business with existing customers through deeper relationships and enhanced technology capability. This is especially true in the case of the passenger car segment where CDP has a large presence.”
Bharat Forge Ltd. (BFL), is the flagship company of the Rs. 2500 crores Kalyani Group which has significant presence in the key sectors of the Indian economy. Established in early 1960’s, the Rs. 700 crores BFL today is a globally competitive organisation with world class engineering capabilities and stat e-of-the-art manufactur ing facilities. BFL is the largest Forging Company in Asia and one of the three largest and most technologically advanced commercial forge shops in the world. It has the world’s largest single location forging capacity. BFL is inte rnationally respected for its cutting edge technology and established quality process a nd capabilities developed over the years.
