Ruia Group buys German firm Acument

According to chairman Pawan K Ruia,the buyout was also aimed at tapping opportunities during the next boom in the automotive market projected to grow five folds in India by 2020.

He said the group formally took charge of the assets of four production locations and one logistics centre in Germany of the bankrupt company headquartered in Neuss,a city in North Rhine-Westphalia,located on the west bank of the Rhine opposite Düsseldorf.

Ruia Group formed a joint stock company Ruia Global Fasteners AG promoted by Wealthsea Ltd,Mauritius to take over the Euro 227 million (Rs 1,100 crore approx) turnover company.

Ruia said the deal would be financed from internal accruals and three years sellers credit.

Acument Germany,which went to insolvency in August 2009 was earlier part of Acument Global Technologies,Inc. headquartered in the US.

A steep decline in German automotive production during the economic crisis forced restructuring of the operation.

According to reports,Ruia had assured employees that none of the German sites would be relocated to India. The acquisition turned the Ruia Group into a USD 1 billion group.

Ruia Group’s overseas acquisitions — Schlegel Automotive Europe Ltd in 2008,Draftex Automotive GmbH in 2009 and Gumasol in 2010 — are expected to contribute almost 50 per cent to the group’s revenue.