Endurance Technologies Acquires Fonpresmetal Gap SpA, Italy
Endurance Overseas Srl., Italy (EOSrl), a subsidiary of the Endurance Technologies Limited and the special purpose vehicle for strategic overseas investments, has acquired the entire equity stake in Fonpresmetal Gap SpA (Fonpresmetal), an aluminium die casting company in Italy. Fonpresmetal has its manufacturing facility in Bione (Brescia, Italy) with a capacity of 6,500 Tons of which 50% is dedicated for supplies to the Endurance Group companies in Italy.
The said acquisition has been completed for a consideration of Euro 8.16 million. The estimated balance sheet of this acquired entity (in local GAAP) shows cash & cash equivalents of Euro 3.5 million gross. Upon netting of the outstanding debt for leasehold assets, the cash & cash equivalents would stand at Euro 1.6 million. This acquisition by EOSrl has been funded through its internal accruals/borrowings. The effective date of this acquisition is 7th January 2019.
Fonpresmetal had been a preferred supplier for highly complex aluminium die casting parts to Endurance SpA (erstwhile Endurance FOA SpA), our operating step down subsidiary in Italy. Acquisition of Fonpresmetal will augment casting capacity and help backward integration. This acquisition would also provide future growth opportunities for us in Europe.
Fonpresmetal recorded revenues (in local GAAP) of Euro 24 million for manufactured parts in the previous calendar year 2017 and is expected to achieve revenues of around Euro 27.5 million for manufactured parts during the calendar year ended in December 2018. Apart from Endurance Group companies in Italy, the second most important customer of Fonpresmetal is the Bosch Group.
Upon acquisition, the name of Fonpresmetal has been changed to Endurance Castings SpA. Consequent to this acquisition, the Endurance Group in Europe now has nine manufacturing plants, of which six are in Italy and three in Germany.