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Bharat Forge, a leading auto component player, and its subsidiary, BF Industrial Solutions (BFISL) today announced entering into a definitive agreement to acquire 100 per cent of Coimbatore-based JS Autocast Foundry India for an undisclosed sum.
Established in 2004, JS Auto supplies critical machined ductile iron castings for wind, hydraulic, off-highway and automotive applications.
Bharat Forge will acquire JS Auto for an upfront consideration (based on enterprise valuation adjustments) plus a fixed deferred payment at the end of the third year. The closing of the transaction is subject to customary closing conditions.
Amit Kalyani, Deputy Managing Director, Bharat Forge, said, “JS Auto will accelerate our diversification journey and enable in addressing the decarbonization opportunity. This acquisition along with the previous deal in the open die segment significantly broadens our presence, capabilities and product offerings in the industrial space”.
The acquisition shall enable Bharat Forge to expand its product portfolio in the industrial sector, customer base and manufacturing presence in south India. After completing the acquisition, JS Auto will become a wholly-owned subsidiary of BFISL and a step-down subsidiary of Bharat Forge.
Over the past five years, the sales of JS Auto has grown at a CAGR of 17.7 per cent. JS Auto registered sale of ₹259 crore in FY21.
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