Moneycontrol
Jul 14, 2017 09:36 AM IST | Source: Moneycontrol.com

Pricol up 5% on 100% acquisition of wiping systems biz of PMP Auto Components

The company has signed binding agreements to acquire 100 percent of the wiping systems business of Ashok Piramal Group's PMP Auto Components.

Pricol up 5% on 100% acquisition of wiping systems biz of PMP Auto Components

Moneycontrol News

Share price of Pricol added 5 percent in the early trade on Friday as it is going to acquire wiping systems business of PMP Auto Components.

The company has signed binding agreements to acquire 100 percent of the wiping systems business of Ashok Piramal Group's PMP Auto Components.

"The acquisition would be undertaken by Pricol through its wholly owned subsidiaries and the transaction will be funded by a combination of internal accruals and external debt," company said in press release.

"The transaction would be EPS accretive to the shareholders of Pricol and the profitability is expected to further improve upon the integration of the business with Pricol," it added.

PMP Auto Components has manufacturing facilities operational in the Czech Republic, Mexico and India and supplies wiper motors to global automotive customers including VW, Fiat, John Deere, Skoda, Audi, Seat.

Vikram Mohan, managing director of Pricol said, "This acquisition ties in well with our long-term strategy of driving growth and achieving product diversification."

"With manufacturing presence in Czech Republic and Mexico, this acquisition fits in perfectly with our ongoing plans to establish the presence in these regions. We are also very excited about the potential of this business in the Indian market and confident of extracting synergies,” he said.

At 09:26 hrs Pricol was quoting at Rs 93.10, up Rs 2.65, or 2.93 percent on the BSE.

Posted by Rakesh Patil
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