Amtek Auto acquires Triplex Ketlon group

Amtek Auto Ltd has informed that the Company has acquired one of the largest automotive precision machining Companies M/s. Triplex- Ketlon Group, which was also Amtek's strongest competitor running close to 185 different machining lines and a multi-location presence in the UK. Triplex-Ketlon manufacturing facilities are located in Paddock Wood, Stratford-upon-Avon and Hereford all in UK.

At sales revenue of $152 million per annum, Triplex-Ketlon was one of UK's large but independent precision machining Companies. This acquisition further consolidates the position of Amtek presence in Europe's automotive scene and makes Amtek's combined precision machining operations the largest in the UK and probably one of the largest in Europe as well.

This acquisition comes as an expansion for Amtek's precision machining operations, which currently comprises of two large precision machining facilities in Coventry and Letchworth in the UK besides their machining operations in India and Germany.

Triplex-Ketlon is regarded as a dominant player in Europe's strong automotive industry with a very strong customer base that Includes names like Perkins, Land Rover, Honda UK, Ford, TRW, JCB, Toyota UK, Dana Spicer, Honeywell among others. This provides Amtek an entry into the very high growth Japanese OEMs like Toyota and Honda in Europe, besides getting Amtek into high value gear manufacturing in Europe.

The main products of this Company include Ladder Frames, Engine and transmission covers, Steering Knuckles, Flywheel Assemblies, Exhaust and Intake Manifolds, Wheel Hubs & Flanges, Brake Discs, Pulleys, Piston, Hydraulic Actuators, Gear Box Housings and most Important Gears, Shafts and Sprockets.

Triplex-Ketlon is a profitable business and has long-term business relationships with its customers. All the current customer contracts are long-term. With this acquisition the combined operations of Amtek increase in size to more than $650 Million per annum just in UK alone. Adding the German machining operations at Zelter and the Midwest Manufacturing in USA, the combined sales revenue of the Amtek overseas operations increases to about $770 Million. Amtek targets its overseas sales revenue to cross $1.0 Billion within next 2 years.

Amtek has drawn up an integration plan for this acquisition which will bring in
considerable cost savings due to variable and fixed cost synergies, besides providing Amtek and entry into new customers like Honda and Toyota in the UK as also some non automotive customers.

This also increases the scope and possibility of additional highly profitable outsourcing opportunities worth $ 100 Million for Amtek's forging and iron casting and aluminium die-casting operations in India. This is in line with Amtek's strategy of expanding its forging, iron and aluminium casting capacities in India over the last 2 years at a cost of over INR 500 Crores for meeting the captive demand for forgings and castings of Amtek's overseas operations.

This acquisition will be another milestone for the Amtek Group and a step forward in direction of consolidating its customer and product portfolio as well as attaining world class technological edge in automotive manufacturing.