M&A

M&A

M M Forgings to acquire Cafoma Autoparts in Rs.30-Cr deal

BSE Disclosure   BSE Disclosure  

Publicly listed MM Forgings Ltd (MMF) is to acquire a 100% stake in Chennai-based Cafoma Autoparts Pvt Ltd (CAFOMA) in a deal that includes INR 28 crore in cash and INR 5 crore of debt. Cafoma is amongst the large independent suppliers of machined Crankshafts catering to the tractor and industrial segments. CAFOMA has a capacity to produce 15,000 crankshafts per month. Cafoma is presently machining 5,000 crankshafts per month on job work basis. Along with investments at MMF's own facilities and the acquisition of Cafoma, MMF's machining capacity of crankshafts will be enhanced to 5,000 Crankshafts per month in South India. MMF expects this acquisition to add a potential of INR 100 crores plus of turnover with the development of new parts and markets. Cafoma is a 40 year old company with its plant located at Ranipet having 20,000sq.m of freehold land and 6,500sq.m of constructed factory building. Of this, 10,000sq.m of vacant land is available for further expansion.