Topnews.com Wed, 04/02/2008
Chennai-based Sanmar Group, which has diversified interests in chemicals, engineering and shipping, has acquired US-based, Matrix Metals LLC, a portfolio company of Jefferies Capital Partners, for an undisclosed sum.
The deal is the result of a close association between the Sanmar Group, headquartered in Chennai, and Matrix's NEPCO unit, which has sourced castings from Sanmar for many of Matrix's important customers over the years. The acquisition has been funded by a bridge loan facility provided by Bank of India and State Bank of India.
This is the second major foundry acquisition in the overseas markets by Sanmar group. The company said that the merger will create one of the leading specialty steel casting groups in the world.
During early 2007, Sanmar group acquired German-based Eisenwerk Erla GmbH, a high-end alloy castings producer for Rs 150 crore.
Matrix Metals employs over 1,300 people and operates one of the largest steel casting businesses in North America. The company closed the last financial year with sales of $157 million, up 10% over 2006 sales.