CK Birla group-owned National Engineering Industries Ltd (NEI) on Wednesday announced the acquisition of Slovakia-based automotive bearing manufacturer Kinex Bearings. The Delhi-based automotive component manufacturer didn’t specify the value of the transaction, which was conducted through its wholly-owned subsidiary in Europe.
The transaction is in line with NEI’s strategy to augment its product portfolio and expand its geographic footprint, as well as serve its existing customers better and acquire new customers, said the company in a press release.
This acquisition includes two production plants in Slovakia, with the capability to produce bearings for various sectors such as railways, industrial segments and textile, and has an annual turnover of €60 million. It also manufactures bearings for aerospace and water pump bearings for the automotive sector. Kinex exports its products to over 80 countries and employs around 1,000 workers.
“The Kinex acquisition equips NEI to enhance its scale and further diversify its portfolio with a much stronger position to provide best-in-class products to both new and existing customers,” said C.K. Birla, chairman of the group.
According to Rohit Saboo, president and CEO, NEI, this deal positions the company on the global map with an international manufacturing footprint and the advantages of a more efficient supply chain to serve global customers.
“This acquisition is a significant step forward in NEI’s vision and global ambitions. We are excited to have the complementary product portfolio, skills and capabilities of Kinex and we firmly believe that we can leverage the synergies between both companies to chart an exciting path ahead for growth and engineering excellence,” said Saboo.
This article was first published on livemint.com.