Sanmar Buys US Foundry Co

Our Bureau, Chennai, April 1

The Chennai-based Sanmar group today announced that it had acquired Matrix Metals LLC, a US-based speciality steel castings company that has two foundries in the US and one in Mexico. Sanmar has acquired it for an undisclosed sum from Jefferies Capital Partners.

The Sanmar group has a steel foundry and is investing Rs 100 crore in tripling its capacity to 30,000 tonnes a year. Last year, it acquired a German foundry. Now, with the acquisition of the $ 157-million Matrix Metals, the group would have 60,000 tonnes of steel castings and 50,000 tonnes of premium iron alloy castings, says a press release from Sanmar.

Mr B Natraj, a senior official of the Sanmar group is relocating to the US to look after Matrix operations, the release says. It quotes Mr Natraj as saying that the group's first priority would be to reinforce Matrix's sales and marketing efforts in the US.

The acquisition was funded by a bridge loan provided by Bank of India, New York.