Remsons Industries acquires UK based Magal Cables

MUMBAI:Remsons Industries, an automotive cable supplier on Friday announced the acquisition of UK based Magal Cables Ltd, a part of Arlington Group Engineering systems. Remsons acquired MCL, through a wholly owned subsidiary Remsons Holding Ltd, (incorporated in UK) for Rs 33 crore which was funded through internal accruals and debt.
Magal Cables Ltd (MCL) has its manufacturing facility at Stourport near Birmingham with a state of art technical center, Testing and Validation Laboratory. The company manufactures control cable assemblies, pedal box systems, spare wheel winches and jacks which are supplied to like Ford, JLR, Daimler, Renault, Volvo and many more across the globe including UK, Europe, USA.

Krishna Kejriwal, Chairman & Managing Director of Remsons said, Remsons is taking a quantum leap by acquiring Magal Cables Ltd.

"The acquisition would provide a vertical integration. The move will give us access to global OEMs and markets. Our in-house team in tandem with the existing Magal Cables team will create new avenues for our long-term OEM partners and will further bring in efficiency and design excellence," added Kejriwal.

Despite the demand disruptions in our domestic automotive market and the global pandemic of COVID19, Remsons’ revenues have grown by 10% over the last two years. This acquisition will give further stimulus to growth, feels Kejriwal.

KDA Corporate Advisors LLP, part of Kanu Doshi Group, were advisors to Remsons for the transaction. DBS Law were the legal advisors for the transaction.

Arlington Group operates under three key business units: thermal management, engineering systems and thermostatic elements. The group had entered administration in May 2020 due to financial constraints, however, Magal Cables Ltd. was one of the few profit-making entities within the group. In the financial year ended 31st March 2020, MCL achieved a standalone revenue of GBP 8.6 million with EBITDA of 15%.

Amit Srivastava, Group CEO at Remsons, said, the acquisition gives the company a complimentary manufacturing footprint with technological advancement and closer access to customers in Europe.

"Now a wide array of world class range of products can be offered under one roof.For our shareholders, Remsons moves towards a truly global revenue profile and expansion in margins due to synergy benefits of this acquisition," added Srivastava.