Endurance Technologies rose 0.38% to Rs 1,215.75 at 10:25 IST on BSE on after the company's subsidiary acquired the entire equity stake in Fonpresmetal, an aluminum die casting company in Italy.
The announcement was made after market hours yesterday, 7 January 2019.On the BSE, 127 shares were traded on the counter so far as against the average daily volumes of 3,246 shares in the past two weeks. The stock hit a high of Rs 1,225 and hit a low of Rs 1,215.70 so far during the day.
Endurance Technologies said that Endurance Overseas Srl., Italy (EOSrl), a subsidiary of the company and the special purpose vehicle for strategic overseas investments, has acquired the entire equity stake in Fonpresmetal Gap SpA (Fonpresmetal), an aluminum die casting company in Italy. Fonpresmetal has its manufacturing facility in Bione (Brescia, Italy) with a capacity of 6,500 tons of which 50% is dedicated for supplies to the Endurance Group companies in Italy.
Fonpresmetal had been a preferred supplier for highly complex aluminum die casting parts to Endurance SpA (erstwhile Endurance FOA SpA), operating step down subsidiary in Italy. Acquisition of Fonpresmetal will augment casting capacity and help backward integration. This acquisition would also provide future growth opportunities for the company in Europe.
The acquisition has been completed for a consideration of Euro 8.16 million. This acquisition by EOSrl has been funded through its internal accruals / borrowings. The effective date of this acquisition is 7 January 2019. Upon acquisition, the name of Fonpresmetal has been changed to Endurance Castings SpA. Consequent to this acquisition, the Endurance Group in Europe now has nine manufacturing plants, of which six are in Italy and three in Germany.
Endurance Technologies' consolidated net profit rose 25.61% to Rs 125.21 crore on 23.22% rise in total income to Rs 1944.70 crore in Q2 September 2018 over Q2 September 2017.
Endurance Technologies is a two-wheeler and three-wheeler automotive component manufacturer. The company has operations in Europe with manufacturing facilities in Italy and Germany. The company is a tier one supplier to original equipment manufacturers (OEMs) for most of its products.
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