Bharat Forge Ltd, the flagship company of the $1.25-billion Kalyani Group in India, has announced the acquisition of Federal Forge Inc., Lansing, MI through its wholly owned subsidiary, Bharat Forge America Inc. Federal Forge filed for protection under Chapter 11 of the US Bankruptcy Code in February 2004.
In announcing the acquisition, Baba N. Kalyani, chairman and managing director, Bharat Forge Ltd, said that Bharat Forge America Inc. acquired the assets of Federal Forge, effective from June 24, 2005, in an all-cash deal valued at $9.1 million.
Chairman Kalyani said, "The Federal Forge acquisition is a significant step towards implementing the strategy of expanding our global footprint and establishing a manufacturing presence in one of our largest markets - the US." "Our strategy is to expand our `dual shore' manufacturing base through strategically located complementary facilities around the world."
The company acquired the German company Carl Dan Peddinghaus GmbH & Co KG (now called CDP Bharat Forge GmbH) a year ago.
Established in 1962, Federal Forge is located in Lansing, Michigan. The company manufactures a variety of forged automotive components such as control arms, links, steering knuckles and connecting rods.
Bharat Forge, established in 1960, has a full service supply capability in engine and chassis components and manufacturing facilities in five locations - two in India and three in Germany.