NEW DELHI: Amtek Auto, one of India’s largest automotive component makers, is preparing to buy Germany’s Scholz Edelstahl GmbH, several people familiar with the matter said. Scholz is a manufacturer of high-quality hot forgings for the automotive and non-automotive component industries, with annual sales of about 175 million euros (about 12 billion euros).

The acquisition will be made through Amtek Auto Amtek is a wholly owned subsidiary of Precision Engineering in Singapore, two people familiar with the matter said. John Flintham, Amtek’s global CEO, confirmed the company’s confirmed interest in Scholz.

The potential acquisition of Scholz is a highly synergistic acquisition that fits well with Amtek’s existing Group business,” said Flintham. We also look forward to utilizing Scholz’s strong customer relationships and extensive support infrastructure.” We are looking to integrate Group companies. ‘

The newly acquired company has a state-of-the-art forge in Allen and offers customized solutions through steel services and product support at other plants in Essingen.

Scholz is also involved in the customized specialty steel trading business, which could lead to a deal with Amtek A reverse integration of the group’s international operations across four continents.

This year marks the anniversary of the acquisition of Delhi-based Amtek Auto, the flagship subsidiary of the Amtek Group, for 27 (~$16,999 million (~$16,999) Rs 19 crore). The group manages 63 manufacturing facilities in several countries specializing in the casting and forging business, which has hitherto mainly served the automotive industry.

ET reported in November that Amtek would make three overseas acquisitions. Scholz was one of them. Two other deals have yet to be finalized, company sources said.

The acquisition will also consolidate Amtek’s position as one of the world’s largest integrated forging, casting and machining companies through the successful integration of the recently acquired German companies Tekfor and Kuepper Group, a source close to the situation said. Development.

Amtek also acquired a majority stake in JMT Auto, an automotive parts manufacturer in Jamshedpur, last year. The Amtek Group now has four listed companies-Amtek Auto, Amtek India, Ahmednagar Forgings and JMT.

The company recently signed an agreement with global investment firm Kohlberg Kravis Roberts (KKR) to provide a term loan of €235 1 million (approximately Rs 155 1 crore) through another Singapore-based grantee, Amtek Global Technologies. The funds will be utilized for expansion and repayment of a portion of the group’s debt of about Rs 150,000 crore.