JBM acquires majority stake in German auto firm Linde-Wiemann

Mumbai: Listed auto-components maker JBM Group has acquired a majority stake in Linde-Wiemann, a German manufacturer and supplier of structural components and assemblies to automobile companies globally, the company said in a stock exchange filing on Monday.

The transaction was financed by ICICI Bank. However, financial details of the deal were not disclosed.

Linde-Wiemann specializes in hot forming, tubular assemblies, and usage of alternative materials such as aluminium resulting in lightweight auto systems. It has 17 manufacturing plants across Germany, the US, China, Spain, Turkey, Czech Republic, Hungary, and South Africa, and employs more than 2,300 people.

The acquisition will help JBM access new products, increase the number of its global customers, and add to its competitiveness in India, the company said.

It will also benefit from the German company’s strengths in electric vehicle components and battery structure and systems.

Linde-Wiemann’s clients include Volkswagen, Audi, Skoda, Porsche, Daimler, and Ford.

“JBM and Linde-Wiemann will together focus on developing new products that contribute towards improving the safety and performance of vehicles through light-weighting, thereby increasing the product quality and minimizing the time to market for original equipment manufacturers (OEMs), making it an integrated one-stop solution," said Nishant Arya, executive director, JBM Group.

“The company (acquisition) opens up a lot of opportunities in the tech space. They (Linde-Wiemann) are very strong in alternate technology and are also working on several global platforms for companies such as Volkswagen, General Motors, PSA, and Ford. With this deal we will become an automatic choice for those OEMs," Arya said.

Linde-Wiemann also has EV components and battery technology, which JBM is hoping to use in its buses, Arya said.

JBM makes safety critical items such as chassis and suspension systems, including axles, twist beams, exhaust systems, air tanks, and fuel tanks for vehicles across the value chain, including passenger cars, two-wheelers, three-wheelers, commercial vehicles and farm and construction equipment.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.