Ruia Group to take over two automotive sealant makers in Europe

Kolkata-based Pawan Kumar Ruia Group has announced that it has entered into binding agreements to acquire Turkey-based Standard Profil and Germany-based Meteor Gummiwerke — for an undisclosed amount. The transaction is subject to standard antitrust approvals and is expected to close in the third quarter of 2011.With these two acquisitions Ruia Group will have four sealing system companies. In 2008 the company had acquired Schlegel in UK and GDX Automotive (now Draftex), Germany in December 2009. Ruia also acquired German automotive fasteners manufacturer Acument GmH & Co KG in February this year. It incorporated a new company, Ruia Global Fasteners AG (RGF). "We are very excited to have signed a deal to acquire such a rapidly growing company. This acquisition is in line with the Ruia Group's strategy to consolidate the automotive sealing industry and its plan to emerge as a global leader in the automotive ancillary industry. The addition of a market leader such as Standard Profil to the portfolio will accelerate the growth," said Pawan K Ruia, Chairman of the Ruia Group, adding, "We would like to have separate holding companies for sealing business, fasteners business and one may be for other miscellaneous operations." "My management team and I are very excited to continue the successful growth of our sealing business under the umbrella of the Ruia group and expand the services for our customers into new regions," said Andreas Engel, CEO of Standard Profil. "We are proud of the success Standard Profil has achieved under our ownership. The transaction with Ruia Group will undoubtedly result in a winning combination," said Tamas Szalai, partner of Bancroft. It is to be mentioned that Bancroft Private Equity is a private equity firm investing in Central and Eastern Europe and Turkey. Since the launch of its first fund in 1996, Bancroft has invested in 16 companies with 11 exits, including Standard Profil. Bancroft is currently investing its third fund, Bancroft 3, LP. Standard Profil, which has manufacturing locations in Turkey, Bulgaria, South Africa and China, is a fast growing, tier-one rubber profile and weather-strip producer for global automotive OEMs. Standard Profil had EUR 180 million in sales in 2010. The Ruia Group, a fast emerging industrial conglomerate with interest in infrastructure & engineering, tyre & rubber products, sugar and electronics, has had a phenomenal growth since its inception in 1993.This year the group is targeting a turnover of 335 million Euro (20.534 billion Indian rupees), out of which 50 percent will be contributed by it's overseas operations. Acument GmH & Co had a turnover of 227 million Euro in 2010. In 2008 following the global economic meltdown the company incurred a loss of 40 million Euro. As a result, its board of directors had filed for insolvency in 2009. Before insolvency, it had registered a turnover of 800 million Euro before insolvency.