Tata AutoComp System, a subsidiary of Tata Group is acquiring a Swedish truck and bus engine cooler maker TitanX for $135 million. The deal was from European private equity funds to expand its offerings in automotive parts.
TitanX predominantly sells its products to vehicle manufacturers which include Volvo, Scania, Daimler, and Iveco. Tata AutoComp Systems chairman Praveen Kadle said, "TitanX fits perfectly into our future growth areas."
"Given the challenges the auto industry faces in emission control, this acquisition is a crucial part of our strategy of expanding globally and fortifying our presence in the cooling and emissions segments," he added.
The Swedish company has a manufacturing presence in Sweden, USA, Brazil, Mexico, and China, with sales of $200 million.
Tata AutoComp is purchasing TitanX from European private equity fund EQT and Swedish state-owned investment firm Fourier transform. The deal is expected to be closed by the end of this year.
With 33 manufacturing facility in and outside of India, Tata AutoComp Systems has seven joint ventures with many of global auto components makers for a diversified of products for India.
The advisers for the Tata AutoComp Systems were Tata Group's Tata Capital Investment Banking, while EQT and Fourier were guided by BDA Partners.