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The eBearing News
October 9, 2006
Federal-Mogul Acquires
Controlling Share of Goetze India
copyright © 2006 eBearing Inc.
Federal-Mogul Corp. (USA: Pink Sheets:
FDMLQ; operating
under Chapter 11 bankruptcy protection since October 2001) has acquired controlling interest
in Indian partner Goetze India Ltd. for USD $31 million.
Founded in 1954, Goetze India began as a joint venture of Anil Nanda Group
and F-M. Today, Goetze is the largest domestic manufacturer of piston rings and pistons,
with capacity reportedly exceeding 10 million pistons per year and 55 million piston rings per year.
The company's primary markets are OEM manufacturers in India. Goetze products are employed by
manufacturers of gasoline and diesel engines used in motorcycles, three-wheelers, automobiles, light
trucks, heavy-duty trucks, industrial and agricultural applications. Beyond pistons and rings, Goetze
also produces cylinder liners, light alloy castings and miscellaneous related sintered products.
In addition to the Indian OEM market, Goetze also has a small but growing presence in
the international OEM marketplace and global aftermarket.
Employing more than 5,000 workers, Goetze India has plants in
Patiala (pistons, rings, cylinder liners and engine castings), Bangalore (pistons, piston rings
and small-end piston pins), and Bhiwadi (miscellaneous sintered products).
Prior to the acquisition, F-M owned 25.47% of Goetze India.
F-M now owns 50.11% of Goetze India, following the USD $31 million investment. Approximately
$9 million is considered goodwill at this point, but F-M indicated that number is likely to
change following a third party fair value determination review.
Crossing the 50% mark, however slightly, now allows F-M to include Goetze's $166 million of assets
and $75 million of liabilities on its books as a wholly-owned subsidiary.
In the most recent quarter, ended June 30, Goetze India had sales of $14 million and
net income of $2 million.
The acquisition not only put an inexpensive asset boost on the books, it also allows F-M
to extend the reach of its already-established engine bearing relationship with Goetze.
article: F-M plans new engine bearing plant with Goetze India
Jose Maria Alapont, who holds the triple titles of Chairman, President and CEO at Federal-Mogul,
said: "Federal-Mogul's increased investment in GIL is a key part of our strategy to drive global profitable
growth by providing our leading technology, and world-class quality products and services in India,
one of the most dynamic and growing economies of the world. Developing best-cost capabilities and
increasing our manufacturing footprint in India
will enable us to better serve both new and existing customers in domestic and global markets."
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- by Bruce A. Carr
from individual research,
tips and commercial sources.
Unauthorized reproduction is prohibited.
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eBearing.com ... for everything that moves™
Entire contents Copyright 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered
trademarks of eBearing Inc.
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eBearing.com ... for everything that moves™
Entire contents Copyright © 1999-2008, eBearing Inc. All rights reserved.
eBearing.com and "... for everything that moves" are registered trademarks of eBearing Inc.
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