Dynamatic Technologies, an Indian components manufacturer for Airbus SAS, Deere and Ford Motor acquired German automotive component-maker Eisenwerke Erla. Dynamatic acquired the company from Chennai-based Sanmar Group, who had bought over Eisenwerke in January 2007. Eisenwerke, which supplies to global automobile majors such as Audi, BMW, Volkswagen and Daimler, earns revenues of over € 100 million. It has manufacturing facilities in the German town of Erla and in Chennai. 

Dynamatic, which has Hyundai, Honeywell and Cummins among its top customers, acquired Eisenwerke through its wholly-owned subsidiary, JKM Erla Automotive, in a cash deal. This acquisition will not only give the company access to marque customers in the automotive and turbocharger markets, but will also enhance the design, development and manufacturing capabilities. The aggregation between the demerged business and the new acquisition will give them reach across the continent. The exit is part of a clear strategy to again concentrate on core activities.

The acquisition will also grant the company ownership to one of the finest ferrous foundries in Europe, capable of manufacturing extremely complex ferrous castings. Eisenwerk has a modern foundry producing niche products with patented technology, specific to the automobile industry. Component manufacturers could look at companies in the Europe for acquisitions. Some of the drivers of such potential acquisitions could be for geographic expansion, a new customer base or technology. Dynamatic is expecting a consolidated top line of around 1,500 crore this year after this acquisition. A significant portion will come from the automotive division.

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