PE Fund Investments
Carlyle acquires auto parts maker Highway Industries; to merge it with Roop Auto
Investor Disclosure Economic Times
Global PE investment firm Carlyle (via Carlyle Asia Partners) has acquired a controlling stake in Delhi-based auto component manufacturers Highway Industries . This deal, which follows the firm’s acquisition of a 69% stake in auto components maker Roop Automotives Ltd. in January, will see the creation of a new merged entity that will serve as Carlyle’s auto components platform offering applications in electric, hybrid, and ICE-powered vehicles.Post acquisition, the founders of both Highway and Roop will continue to hold minority stakes in the platform company and will work with Carlyle to create new capabilities and capacities. Mark Blaufuss (Operating Executive at Carlyle) and Kishore Saletore (former Executive Director and Group CFO at Bharat Forge Limited) will join the combined entity’s board of directors.Established in 1971, Highway Industries manufacture forged and precision-machined components, steering system assemblies, transmissions and other powertrain applications for electric, hybrid and internal combustion engine (ICE) powered vehicles.KPMG, Trilegal, Kotak and Deloitte acted as advisors to Carlyle for the transaction. Singhi Advisors and KPMG acted as the financial advisors to Highway and Roop shareholders, respectively.
For FY23, Highway Industries had reported about INR 1,043 Cr in Operating Income and about INR 50 Cr in PAT.
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