October 07, 2008

Sona Okegawa buy of Prazisionsschmiede in Germany

BS reported that Sona Okegawa Precision Forgings is likely to have paid INR 620 crore to acquire Germany’s ThyssenKrupp Prazisionsschmiede earlier in 2008. The deal was announced in January 2008 without detailing the buyout amount.

However, Mr Surinder Kapur chairman of Sona Group has been refusing to comment on the deal size. In January 2008, he said that the acquisition would be funded through a combination of debt and equity, without giving any further detail. Mr Kapur said that "Whatever funding exercise we take up, we will ensure there is no impact on the Indian company." He added that post acquisition, Sona Okegawa has become the largest precision forgings company in the world.

ThyssenKrupp Prazisionsschmiede, a subsidiary of German steelmaker ThyssenKrupp Technologies, posted sales of INR 1,740 crore in 2006-07. It has 3 plants in Germany and 1 in the US to make forging equipment for the automobile industry.