MUMBAI: The polymer division of the $1.Five billion VarrocNSE zero.23 % Group received a majority stake in Bengaluru-based Team Concepts, a producer of top-class car accessories for Toyota Motor, Renault-Nissan and the after-market.
The corporations refused to reveal information which includes economic terms and the state concerned. According to humans in the recognise, the Varroc Group offered extra than a 70% stake in Team Concepts for an undisclosed sum. Singhi Advisors, a global funding financial institution targeted on niche cross-border M&As, acted as the extraordinary adviser to Team Concepts within the transaction.
The deal will allow Varroc, an Aurangabad-primarily based car factor producer, to take part in the Rs 5,000-crore organised top rate automobile accessories commercial enterprise, that is forecast to double via 2020. One of the humans aware about the deal stated Team Concept turned into a leading player in the car add-ons business but lacked management bandwidth and financial muscle. Team Concept had generated a turnover of Rs 60 crore, with an EBIDTA margin of 25%, in the closing fiscal year.
The deal price is anticipated to be six instances the EBIDTA, stated the character. The enterprise designs, develops and manufactures top class add-ons like aluminium roof baskets, roof rails, racks, rear bumper protector, body-aspect cladding and front and rear under runs at its manufacturing facility placed at Harohalli Industrial Area. These will upload to the extensive product portfolio of Varroc Polymers.
Varroc Group managing director Tarang Jain said the deal become a part of the institution’s strategy to diversify its domestic companies also in the direction of 4-wheelers and the after-marketplace phase, including to its management function inside the -wheeler area.