Gurugram/UK- Remsons Industries Ltd.1 (Remsons) of Gurugram, a leading automotive components manufacturer, completed acquisition of the business of Magal Cables Ltd.2 (MCL), UK, part of Arlington Group – Engineering Systems. The cost of acquisition including working capital is USD4.55 million pounds. The entire transaction has been funded by a mix of internal accruals and debt without any equity dilution in Remsons. This acquisition is a step towards forward integration to create value for all the stakeholders.
The acquisition has been done on Oct 21, 2020 through the newly incorporated wholly owned subsidiary Remsons Holdings Ltd. (incorporated in the United Kingdom).
Mr. Krishna Kejriwal, Chairman & Managing Director of Remsons, said: “Remsons is taking a quantum leap by acquiring Magal Cables Ltd. We have been working with MCL for over 10 years and this acquisition would provide a vertical integration. We are turning a new chapter of growth for all our stakeholders which will give us access to global OEMs and markets. Our in-house team in tandem with existing Magal Cables team will create new avenues for our long-term OEM partners and will further bring in efficiency and design excellence. Despite the demand disruptions in our domestic automotive market and the global pandemic of COVID-19, Remsons’ revenues have grown by 10% CAGR in past 2 years. This acquisition will give further stimulus to growth.
1Remsons Industries Limited manufactures auto control cables & gear shifters with push pull cables is spread over 6 locations employing over 900 people. It offers various solutions in terms of designing, manufacturing, logistics and client servicing for the automobile industry. It manufactures inner cable (strand, rope and flexible shaft), conduit (flat, round, dual wire and integral liner duly coated), liner, plastic extruded sleeve, injection molding (plastic components) and zinc die casted cable end. Its products include cables, flexible shafts, gear shift systems and push pull cables. Its products are used in applications, including passenger cars, rear engine buses and farm equipment. The Company exports its products to the United States, Columbia, Central America, the United Kingdom, Italy, Spain, Belgium, France and Singapore. The Company has manufacturing facilities in Mumbai, Pune, Daman, Vapi, Gurgaon, Pardi and Sitarganj (Uttaranchal).
2Magal Cables Ltd has its manufacturing facility at Stourport near Birmingham with state-of-art Technical Center, Testing and Validation Laboratory. The company is into manufacturing of control cable assemblies, pedal box systems, spare wheel winches and Jacks which are supplied to prestigious customers like Ford, JLR, Daimler, Renault, Volvo and many more across the globe including UK, Europe, USA. In the financial year ended March 31, 2020, MCL achieved a standalone revenue of GBP 8.6 million with EBITDA of 15%.
