Trade Resources Industry Views Vijayjyot Seats for $13.7m Are Acquired by CVG Seat

Vijayjyot Seats for $13.7m Are Acquired by CVG Seat

Commercial Vehicle Group's Indian subsidiary CVG Seat has acquired all the seat assembly assets of Vijayjyot Seats for $13.7m.

The transaction also includes an additional earn-out potential of about $1.9m based on earnings before interest, taxes, depreciation and amortization (EBITDA) performance during the first two years of the acquisition.

Vijayjyot supplies seats for the passenger, school and coach bus markets in India and its top four customers include Tata Motors, Tata Marcopolo, Ashok Leyland and Volvo/Eicher.

Following the acquisition, Vijayjyot Seats will continue to operate as a stand-alone business, supplying certain components for Indian market and seats for CVG India.

CVG expects the acquisition to achieve revenues of around $28m for the full year 2013 and about $3m for the remainder of 2012.

In addition, the company expects the acquisition to be incremental to earnings per share by about $0.03 per share for the full year 2013.

 

Source: http://www.automotive-business-review.com/news/cvg-seat-acquires-vijayjyot-seats-for-137m-061112
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CVG Seat Acquires Vijayjyot Seats for $13.7m
Topics: Auto Parts