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Home arrow News arrow Mergers and Acquisitions arrow Sintex Industries Ltd acquires Geiger Technik GmbH for 35.6 Million
Sintex Industries Ltd acquires Geiger Technik GmbH for 35.6 Million Print E-mail
Written by Joseph   
Tuesday, 19 August 2008
Geiger Technik is the European market leader in coolant and brake fluid reservoirs

Sintex Industries Ltd, has announced that through its wholly owned subsidiary Sintex Holdings B.V., Netherlands, it has acquired 90% stake in company holding assets of Geiger Technik GmbH (Garmisch-Partenkirchen, Germany) for Euro 35.6 million. Geiger family will continue to hold 10%. This acquisition will assist the company to further enhance its presence in the European Market.

Established in 1960 Geiger is a family owned SME and over the past four decades, created state of the art technological capabilities and cultivated a base of important and regular customers in the automotive industry.

Three hi-tech plants in Germany and one newly established in LCC Poland

The company currently has four manufacturing plants; 2 in Bavarian region, one in Tambach in eastern Germany and one in Poland. The production built up area is 48,500 sq mtrs.

Customers base include BMW, VW, Daimler, Audi, Opel, Porsche and leading Tier 1 automotive suppliers

The company is an expert in injection molding using gas and water Injection with layer/multilayer extrusion Blow Molding processes and latest joining and welding, assembly, clean room production and material technologies.

Commenting on the acquisition Mr. Amit Patel Managing Director, Sintex Industries Limited, said,

“This acquisition offers Sintex a strategic market entrance in Germany which is the capital of the European automotive market. GEIGER makes state of the art unique innovative products which are well positioned in a market where fuel consumption reduction becomes the USP of OEMs. By weight and air resistance reductions, supporting higher engine temperatures and cleanlier products mainly under the hood GEIGER strongly supports this trend. Therefore, GEIGER’s technology is well sought after by the OEMs. Besides, GEIGER’s manufacturing base in Poland also makes it very competitive. We now have presence in both France and Germany which are very crucial OEM bases.”

Added Mr. Albert Geiger, the Managing Owner of Geiger Technik GmbH, Germany,

“We do welcome the comprehensive commitment of Sintex very much. With their investment, GEIGER will continue to thrive as an innovation leader in the automotive components market and identify additional fields of business. The growing Indian economy and the emerging global footprint of Sintex can be leveraged for propelling GEIGER on accelerated growth plan.”

Yes Bank Ltd India and DZ Bank Germany acted as strategic and financial advisors to this transaction.

Products

The company makes 30 different sophisticated precision plastic parts such as Tanks and reservoirs, Piping, Air ducts, Cooling and fuel tank components. The company products enable automotive OEMs to realize weight, cost and efficiencies advantages. The parts meet with stringent quality control as required to function mainly in tough conditions of temperature, pressure vibrations.

Its product range and the comprehensive product capabilities which churn out wide selection of prototype solutions enabling Geiger have an edge and significant important relationship with customers.

Markets

Major chunk of Geiger sales comes from Automotives and remaining from heating and climate technology products and sports and leisure like high speed race sleighs. Geiger serves some of the best of automotive and Tier 1 automotive suppliers like BMW, VW, Daimler, Audi, Opel, Porsche, Modine, Continental, Lear, TRW, Bosch and Siemens. 67% of its turnover comes from Tier 1 and 37% from Automotive OEMs. 

Continuity of Experienced Management

Mr. Geiger Sr, the original founding promoter has been retained as senior Advisor to the newly fond company. He is a seasoned technician and very well respected manager in German Automotive Industry. He along with his son Albert Geiger will continue to provide expertise towards growth of business.

Mr. Olaf Matthei has been appointed as Managing Director of the company. He brings along with him two decades of deep know how and extended professional experience of OEM relationship and management of business in automotive sector. 

Key Benefits from the transaction

Presence in Germany, the key automotive market with most major European OEMs presence.
Elite customer base like BMW, VW, Daimler, Audi, Opel, Porsche and major Tier 1 suppliers.
Unique product range, very few people in the world doing it. The product range brings significant relationship with customers. Geiger has leadership position in Europe for some product categories like coolant and brake fluid reservoirs.
LCC advantage of Poland as well as Tambach (former GDR) manufacturing bases.
Product introduction in India through Bright AutoPlast. Off shoring and cross selling of products.
Leverage relationship of customers, suppliers across subsidiaries.

About Sintex Industries Limited

Sintex Industries Limited is a dominant player in the plastic and textile business segments. The Company manufactures a range of plastic products which broadly fall under the categories of water storage tanks, pre fabricated structures, interior products and industrial custom moulding.

 
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