Singhi Advisors, a niche-focused MA firm Global Investment Banking MA, acted as exclusive advisor to Teama Concepts on this transaction. Exclusive Advisor.

Mumbai: Varroc Group’s $1.51 billion polymer acquired Bangalore-based Team Concepts The company is a manufacturer of premium automotive components for Toyota, Renault-Nissan and the aftermarket.

Both companies declined to disclose details, including financial terms or the shares involved. Varroc Group has acquired 70% of the above stake in Team Concepts for an undisclosed amount, according to people familiar with the matter. Singhi Advisors, a global investment bank specializing in niche mergers and acquisitions, acted as exclusive adviser to Team Concepts on the transaction. Exclusive advisor.

The deal puts Aurangabad-based auto component maker Varrocc involved in a business worth Rs 5 expected to reach Rs 100 crore by 2020 The luxury auto component business is expected to reach 2020 doubling every year. Team Concept is a leader in the auto components industry but lacks managerial and financial strength, a person familiar with the matter said. Last fiscal, Team Concept had a turnover of Rs 600 crore and an EBIDTA margin of 25%.

The deal is expected to be valued at six times EBIDTA, people familiar with the matter said. The company designs, develops and manufactures premium accessories such as aluminum roof baskets, roof longitudinal beams, roof racks, rear bumper protectors, body side coverings, front and rear chassis, etc. at its manufacturing facility in Haroharli Industrial Area. This will enrich the extensive product portfolio of Varroc Polymers.

Tarang Gina, Managing Director, Taroc Group, said the deal is part of the group’s strategy to further diversify its domestic business into the four-wheeler and aftermarket segments to further consolidate its leadership position in the two-wheeler segment.