Sundram Buys Peiner from Textron
Sundram Buys Peiner from Textron
Jason Sandefur
Sundram Fasteners Ltd. agreed to purchase Textron subsidiary Peiner Umformtechnick Gmbh in Germany for a “reasonable price.” Financial terms of the cash deal, effective Jan. 1, 2006, were not disclosed. Peiner generates about Euro 50 million (US$59.2 million) in annual revenue, employs a workforce of 325 and has annual capacity of 18,000 tons.
Sundram chairman Suresh Krishna called the acquisition “one more step in Sundram Fasteners’ quest for globalization,” according to the India newspaper The Hindu.
Peiner makes standard and special fasteners for the automobile, industrial and construction sectors. The deal will also help Sundram gain access to the construction sector.
One of Peiner’s main attractions for Sundram was the acquisition of blue chip customers in Europe, the Hindu reports. Peiner would also increase Sundram sales by as much as 30%. The acquisition reportedly has the approval of all suppliers.
Krishna said Sundram would only relocate Peiner production to India is there is a clear cost advantage. Web: sundram.com �2005/6 FastenerNews.com
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