Mumbai: Spanish bearings maker Fersa Group has entered India through a majority stake purchase in the Mumbai-based Delux Bearings, a manufacturer of bearings and electromechanical components for all types of machinery and light and heavy commercial vehicles. The deal value and the stake size are not disclosed.
The Spanish group, headquartered in Zaragoza, specialises in smart mobility solutions and powertrain components for automotive, wind energy, and industrial sectors. The latest inorganic acquisition is its third over the past 7 years to strengthen its global strategy and consolidate its growth. It had acquired an Austrian company NKE in 2016, and PFI, an American company, in February 2022.
In a press statement, the company said that Delux Bearings would maintain its independence under the management of the Rathod family, its founders.
Kirti Rathod, a second-generation entrepreneur and promoter of Delux Bearings, will continue as chairman of the company. “I am extremely proud to be partnering with the Fersa Group. Our business association quickly catalysed into a collaboration because both the families have the same approach to people practices; which is of paramount importance for us in business,” Rathod said.
The investment in Delux provides the Fersa Group ‘extensive knowledge and experience in bearings and advanced electronic applications for the powertrain of electric and conventional vehicles’, complementary to those it manufactures.
This strategic move also allows Fersa Group to expand its production capacity, strengthen its position in the automotive sector as a supplier to the industry’s leading manufacturers, and generate synergies in innovation and R&D, as well as in operations and costs by reinforcing its global supply chain.
The Fersa Group has 6 production bases, and serves customers in over 100 countries.
Pedro Pablo Andreu, COO, Fersa Group, said, “With this investment, Fersa Group takes another step forward in its growth strategy, its commitment to sustainable technology and global presence”.
“From our humble roots, we are proud to be part of a larger narrative. For us, Fersa Group is an international platform to showcase our local talent and technology. We aim to be able to offer technology solutions ranging from E-bicycles to automotive powertrains to even wind turbines and address every engineering sector”, Rohan Rathod, MD, Delux Bearings, said.
The partnership will help “boost Delux’s growth in both the local and the international markets while allowing us to reach a wide network of international OEMs and aftermarket customers that we could not access”.
Corp Abogados y Economistas advised Fersa Group on the acquisition of the majority stake in Delux Bearings. The Corp Abogados y Economistas team was led by partner Ricardo Chueca González. Meanwhile, EY & Lumiere Law Partners have been Fersa’s advisors in India. KDA Corporate Advisors advised the Rathod family in this transaction.
With the latest acquisitions, Fersa Group demonstrates its clear intention to continue growing in the automotive OEM and aftermarket segments and takes another step forward in its mission to be the global leader in powertrain components, especially in heavy-duty vehicles. The group closed 2022 with EUR 165 million in turnover, a 57% growth compared to 2021, and expects to clock over €EUR 00 million turnover this year.
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