Bilbao, 12.3.2019 – The Board of Directors of Mahindra CIE (“MCIE”) resolved today to acquire the business of Aurangabad Electricals Limited (“AEL”) through the acquisition of 100% of its equity shares for an enterprise value of INR 8,756 million, which includes a deferred payment estimated up to INR 622mn.

Founded in 1985, AEL is a market-leading manufacturer of automotive aluminum die casting products based in Aurangabad, India, with five manufacturing facilities in the country across Aurangabad, Pune and Pantnagar. AEL has been promoted by the Bagla Group and has been led by Mr. Rishi Bagla, who has made a significant contribution towards developing the aluminum die casting industry in India. Motilal Oswal has acted as the financial advisor to the Bagla Group during this transaction.

With more than 3,300 employees, sales of ~ INR 8,500mn and an EBITDA over sales margin near 12%, AEL is a crucial supplier to a number of domestic and global two-wheeler and passenger vehicle OEMs and Tier 1 companies. It manufactures a variety of body, brake and engine parts through high pressure die casting as well as gravity die casting processes. AEL also has capabilities for machining, heat treatment, powder coating, assembly and leak testing, along with a modern tool room.

According to Jesús María Herrera, Chief Executive Officer of CIE Automotive, “We welcome AEL and team to the CIE family. We are very impressed by the business they have built and its sustainable and profitable growth. We believe that their integration in MCIE will provide important opportunities for both MCIE and AEL. This transaction also reinforces CIE’s commitment to the Indian automotive market and means a new opportunity to further extend the CIE model of manufacturing excellence in India.”

Ander Arenaza, Chief Executive Officer of MCIE, says “This acquisition allows MCIE to enter the aluminum die casting technology. AEL´s complementary product and customer mix leads to further diversification of the business portfolio of MCIE India, strengthening especially our presence in the two-wheeler space. The company has very good manufacturing processes and internal controls and is run by a very capable team.”

Rishi Bagla, Chairman and Managing Director of AEL, comments, “AEL has built up a formidable reputation as a high-quality supplier of automotive aluminum die castings in the Indian and international market over the last three decades. While AEL has been a family owned business, it has been operated by a very professional management team. We are convinced that the partnership with MCIE and CIE will give the company a great boost and allow AEL to benefit from global best practices in aluminum die casting. We share a wonderful relationship with CIE based on mutual respect and trust and this has given us great confidence to enter into this strategic operation. With the proceeds of the transaction, the Bagla Group will further develop its industrial activities and businesses.”

Este documento contiene o puede contener manifestaciones o estimaciones de futuro sobre intenciones, expectativas o previsiones de CIE AUTOMOTIVE o de su dirección a la fecha del mismo, que se refieren a diversos aspectos como la evolución del negocio y los resultados de la entidad. Dichas manifestaciones responden a nuestras intenciones, opiniones y expectativas futuras, por lo que determinados riesgos, incertidumbres y otros factores relevantes pueden ocasionar que los resultados o decisiones finales difieran de dichas intenciones, previsiones o estimaciones. Entre estos factores se incluyen, sin carácter limitativo, (1) la situación de mercado, factores macroeconómicos, directrices regulatorias, políticas o gubernamentales, (2) movimientos en los mercados de valores nacionales e internacionales, tipos de cambio y tipos de interés, (3) presiones competitivas, (4) cambios tecnológicos, (5) alteraciones en la situación financiera, capacidad crediticia o solvencia de nuestros clientes, deudores o contrapartes. Estos factores podrían condicionar y determinar que lo que ocurra en realidad no se corresponda con los datos e intenciones manifestados, previstos o estimados en este documento y otros pasados o futuros, incluyendo los remitidos a las entidades reguladoras incluyendo la Comisión Nacional del Mercado de Valores. CIE AUTOMOTIVE no se obliga a revisar públicamente el contenido de este documento, ni de ningún otro, tanto en el caso de que los acontecimientos no se correspondan de manera completa con lo aquí expuesto, como en el caso de que los mismos conduzcan a cambios en la estrategia e intenciones manifestadas. Lo expuesto en esta declaración debe ser tenido en cuenta por todas aquellas personas o entidades que puedan tener que adoptar decisiones o elaborar o difundir opiniones relativas a valores emitidos por CIE AUTOMOTIVE y, en particular, por los analistas que manejen el presente documento. Se advierte que el presente documento puede contener información no auditada o resumida, de manera que se invita a sus destinatarios a consultar la documentación e información pública comunicada o registrada por CIE AUTOMOTIVE en entidades de supervisión de mercados de valores, en particular, los folletos informativos y la información periódica registrada ante la Comisión Nacional del Mercado de Valores de España (CNMV).