Rolex Rings to Buy LatAm Forgings Co

By PYC Bearings
©2004-2008

Rajkot-based Rolex Rings (RRPL), a supplier of forged and rolled rings to global brands such as FAG Bearing and SKF Bearings, is all set to buy out a Latin American forgings company for Rs 150 crore. Rolex has confirmed it has carried out a due diligence of the target company and the deal is likely to be completed in a month.

The acquisition will give the Rs 300-crore rings manufacturer access to new markets, said Manesh Madeka, managing director, RRPL. ¡°We want to expand our presence in Latin America and nearby markets in the US, through this acquisition,¡± he said.

Rolex plans to raise Rs 100 crore through private equity, while a minor investment would be supplemented by debts route. RRPL had raised Rs 160 crore by divesting 26% to a US-based PE firm New Silk Route, to fund its expansion plans.