Bharat Forge acquires 30 pc stake in Fortuna Engineering for Rs 129.60 cr

Mumbai, Apr 30 (PTI) Diversified group Bharat Forge on Thursday announced acquiring a 30 per cent stake in precision-machined engine components maker Fortuna Engineering Private Limited for Rs 129.60 crore.
    The acquisition is in line with the company's strategy to strengthen its machining capabilities and forward integration, Bharat Forge said in a regulatory filing.
    The deal, through cash transaction, is expected to enhance value addition, and support growth in domestic and export markets, it said.
    The company retains the option to acquire an additional up to 20 per cent plus one share in subsequent tranches, taking the total potential holding of up to 50 per cent, which is subject to conditions as per the definitive agreements and applicable approvals.
    The completion of the transaction remains subject to the satisfaction of customary conditions precedent and other applicable approvals, the company said.
    "Bharat Forge Limited announces the acquisition of a 30 per cent stake in Fortuna Engineering Private Limited at an equity value of Rs 129.60 crores, subject to final closing adjustments," the company said in a statement.
    "We have entered into this partnership with Fortuna. We look forward to working closely with the promoters and management team of Fortuna to scale the business further and build on the significant opportunities ahead," said Amit Kalyani, Vice Chairman and Joint Managing Director, Bharat Forge Limited.
     Established in 1989, Fortuna into manufacturing of precision-machined engine components for automotive and industrial applications in India. The company supplies to major automotive OEMs in India across the passenger vehicle, commercial vehicle, tractor and off-highway segments.
    "This partnership is a significant milestone for us and a strong enabler for our next phase of growth across new products, new customers and new geographies. We see this partnership as a powerful opportunity to strengthen our contribution to the 'Make in India' vision by building world-class capabilities in India for global requirements," said Suriya Narayanan, Chairman and Managing Director, Fortuna Engineering Private Limited.

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