India-based precision engineering company Dynamatic Technologies has announced that “It has divested foundry assets of its wholly-owned subsidiary — JKM Ferrotech Limited to M/s Danblock Brakes India Private Limited.”
According to the statement, “The transaction was concluded on July 22, 2021, for a cash consideration of Rs 70-75 crore.”
Speaking on the acquisition, Udayant Malhoutra, CEO & MD of Dynamatic said, “As pioneers in the automotive sector, we benefited from our association with auto majors like Daimler, BMW, Hyundai, Ford, Renault, and TATA. Learnings from this sector have enabled us to build a world-class Aerostructure capability, and today we are a Tier 1 Single Source supplier for marquee clients in Aerospace and Defense businesses like Airbus, Boeing, Bell Helicopter, and HAL.”
“The company has also focused on designing and building proprietary hydraulic products and is now the world’s largest producer of Hydraulic Gear Pumps for agricultural tractors. When we decided to divest our Indian automotive castings business, we looked for someone more aligned to this sector. We are happy to hand it over to the US $2 Billion MAT Group, one of the world’s leading manufacturers of automotive components. We wish the MAT team great success with this business,” Malhoutra added.
Commenting on the sales deal with Dynamatic Technology, Steve Wang, Chairman & CEO of MAT Holdings, Inc., said, “MAT has over 10 facilities in India located in Northern India and with the JFTL assets, we shall be marking our first entry in Southern India, starting with Chennai. With its location close to the port and in one of the most prominent auto belts in India, we find it an ideal site to expand our operations, both in domestic & export markets. We thank the Dynamatic team for this transition, as we embark upon our new journey in Chennai.”
Global investment banking firm Singhi Advisors were the advisors to Dynamatic Technologies on the transaction.