Shriram Pistons Acquires TGPEL Precision Engineering for Rs 220 Cr

Mumbai, Dec 10 (PTI) Auto parts maker Shriram Pistons & Rings Ltd (SPRL) on Tuesday announced plans to acquire a 100 per cent stake in TGPEL Precision Engineering at an enterprise value of Rs 220 crore on debt-free cash-free basis..

The deal, subject to regulatory approvals, is expected to be completed this month and will be a step further towards the company's focus to consolidate and strengthen its position in the manufacturing of high-precision injection moulded components, Shriram Pistons & Rings said.

The proposed acquisition is part of SPRL's overall long term strategy to invest, diversify and grow its product portfolio in the areas agnostic to internal combustion engine Powertrain, thereby cementing its leadership position in the automotive sector, the company said.

TGPEL formerly known as Timex Group Precision Engineering Limited is into precision mould making and injection moulded parts' manufacturing with a wide range of products in automotive space.

Besides, it is also present in electrical, consumer goods and medical segments in India and abroad.

"Shriram Pistons & Rings Limited has announced to acquire 100 per cent shareholding in TGPEL Precision Engineering Limited through its wholly owned subsidiary, SPR Engenious Limited," it said.

"The enterprise value of TGPEL for the proposed deal is Rs 2200-million on debt free cash free basis and is subject to adjustments, if any, as defined in the Share Purchase agreement at the time of closing of the deal," it added.

Set up in 2008, TGPEL has two manufacturing facilities in Noida, Uttar Pradesh.