Sintex buys 90% stake in German company

Ahmedabad: Sintex Industries, a market leader in plastic and textile segments, announced that through its wholly-owned subsidiary Sintex Holdings B.V., The Netherlands, it has acquired 90 per cent stake in Geiger Technik GmbH (Garmisch-Partenkirchen, Germany) for an approximate project €35.6 million.

The Geiger family will continue to hold the remaining 10 per cent. This acquisition will assist the company to further enhance its presence in the European market, Mr Amit Patel, Managing Director, Sintex Industries, said here in a statement. Yes Bank Ltd, India, and DZ Bank, Germany, were the strategic and financial advisors to this transaction. This is Sintex’s third overseas acquisition.

Mr Geiger Sr, the founding promoter, has been retained as senior advisor to the newly-founded company while Mr Olaf Matthei has been appointed the Managing Director.

Geiger Technikis a European market leader in coolant and brake fluid reservoirs. Its customers include BMW, Volkswagen, Daimler, Audi, Opel, Porsche, and leading Tier-1 automotive suppliers. Geiger introduced its products through Bright Auto Plast in India and continued off-shoring and cross selling of products.

The acquisition offers Sintex a market entry in Germany, the ‘capital’ of European automotive market. Geiger’s manufacturing base in Poland also makes it competitive. Sintex now has presence in both France and Germany.

Mr Albert Geiger, Managing Director, Geiger Technik, said the growing Indian economy and the emerging global footprint of Sintex can be leveraged for propelling Geiger on accelerated growth plan.

Established in 1960, Geiger is a family owned SME having four manufacturing plants two in the Bavarian region, and one each in Tambach, eastern Germany, and Poland. The company makes 30 precision plastic parts for automotive sector.

During the last three years, Gujarat-based Sintex has acquired US-based Wasaukee Composites for $245 million; Europe-based Nief Plastics; an Indian company Zepplin Mobiles; and the automobile division of Bright Brothers.

In the next two years, it plans to invest a $150million to acquire two more companies through its Holland-based foreign arm. Besides, Sintex also plans to invest Rs 600 crore in the next couple of years for expansion of its key businesses and capacities.