Auto parts maker Minda Industries Ltd has signed a definite pact to acquire German automotive lamps engineering, design and testing company, Delvis Gmbh, at an enterprise value of about €21 million.
The deal will include two subsidiaries, Delvis Solution and Delvis Products, Gurugram-based Minda said in a regulatory filing.
The transaction, subject to closing conditions and other regulatory approvals, is expected to be completed within the next two months, and will be funded through a mix of debt and equity.
The acquisition forms part of Minda’s strategy to improve its technological prowess in existing product lines, which includes automotive lighting, the statement said. Delvis has a significant presence in auto-lighting technology and works closely with German automakers such as Volkswagen, Audi and Porsche.
The acquisition is expected to deliver considerable synergies for growth of its lamp business in India and enhance its product offerings to original equipment manufacturers (OEMs), the company said.
“The automotive lighting industry has seen a major shift in technology with the advent of LED (light emitting diode) based lighting products. While the global markets had migrated to LED 8-10 years ago, India market is now demanding this technology. This acquisition would help us bring this gap with cutting edge technology that Delvis has to offer to global markets,” said N.K. Minda, chairman and managing director, Minda Industries.
The article was first reported on Livemint.com