Unison sells Asahi Tec casting assets to India's Amtek Auto

Financial details of the transaction have not been disclosed.

The acquired businesses - Asahi Tec Metals, Techno-Metal, Asahi Tec Metals (Thailand), Hefei Asahi Tec Metals, and Dongling Asahi Tec Metals - are engaged in iron casting and forging components for original equipment manufacturers (OEMs) in the automotive and construction machinery industries.

The combined group employs 1,500 people across all its locations, and comprises three manufacturing facilities in Japan, two in Thailand, and a strategic holding in a Chinese joint venture. Key products include cylinder blocks, crankshafts, front axle beams, cylinder heads, turbocharger housings and other engine and suspension related components.

In a statement, Asahi Tec said the deal would allow the companies to rebuild through synergies with Amtek and leveraging its global network. According to Amtek, the acquired businesses generated revenues of $375 million for the year ended March 2015. Its OEM customers include Caterpillar, Hino Motors, Mitsubishi Fuso, Mitsubishi Heavy Industries and Mitsubishi Motors.

"The addition [...] not only complements Ahmednagar Forgings' and Amtek India's businesses, but also strengthens our position as one of the world's most technically advanced automotive component manufacturers in our chosen markets," said John Flintham, global CEO of Amtek Group. "The acquired business is a long established, reputed supplier to some of the high profile Japanese OEMs who are focused on the attractive Southeast Asian region as well."

Established in 1938, Asahi Tek was acquired by Unison in 2012 from Belgian private equity firm RHJ International and Tokio Marine & Nichido. The sale was understood to have generated JPY14.2 billion ($120 million) for RHJ, which held a 62% stake in the business. 

Prior to that acquistion, Asahi Tec sold its water and water treatment subsidiary, Asahi Tec Environmental Solutions, to Nippon Mirai Capital in 2010. According to its website the group has generated consolidated sales of JPY82.4 billion as of April.

Amtek has consolidated annual sales of approximately $3 billion and operates in 70 locatons in over eight countries across India, Europe and the Americas. Its clients include BMW, GM, Ford, Honda, Volkswagen, and Halliburton.

The transaction is expected to close next month. SMBC Nikko Securities and Development Bank of Japan advised Amtek on the deal.

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• Topics
• North Asia
• Industrials
• Exits
• Buyouts
• Japan
• Unison Capital
• manufacturing
• buyout
• Exit
• Trade sale
• automobiles