Mahindra inks agreement to acquire Jeco Holding AG

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Mahindra inks agreement to acquire Jeco Holding AG

Mahindra inks agreement to acquire Jeco Holding AG. Deal valued at enterprise value of Euro 140 million (Rs. 830 crores)

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Mahindra & Mahindra Ltd. through its subsidiary has agreed to acquire 67.9% stake in Jeco Holding AG, one of the top five forging companies in Germany. The transaction is subject to receipt of necessary approvals. It is the largest outbound* acquisition in the auto component arena, and is valued at an enterprise value of approximately 140 million euros.

JECO Holding AG with over 120 years of experience is primarily focused on the Truck, Bus & Trailer market. Its major products include gear boxes, engine & axle parts, hubs, gears and piston heads. The company has forging production of 100,000 tpa and revenue turnover of Euro 180 mn (for CY 2005). Its top customers include DaimlerChrysler Group, ZF Group, MAN Nutzfahrzeuge, Volvo, Linde, Renault, Agco, Kessler and Kolbenschmidt. 90% of shareholding in Jeco Holding AG is currently held by Scholz AG with the remaining 10% held by management.

The company will benefit from the continued presence of the erstwhile shareholders and management of JECO Holding AG in further building the business of JECO.  Mr. Thomas Korner will continue to hold the position of Chief Executive Officer. He has the benefit of a rich experience in the forging industry for over 20 years. He has held positions with leading forging companies including Carl Dan Peddinghaus. 

Mr. Anand Mahindra, Managing Director and Vice Chairman, Mahindra & Mahindra, said, "With this acquisition, the Mahindra group has taken a decisive and important step towards creating a global class and global scale business in auto components. This creates a platform that enables us to pursue our vision of building the auto components business as one of the core businesses of Mahindra Group"

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