ATE to acquire SKF India’s Textile Business

Company Performance

ATE to acquire SKF India’s Textile Business

A.T.E. Enterprises has concluded an agreement to acquire the textile machinery component business from SKF India Ltd. The textile machinery components manufactured by SKF include key products such as high speed spindles, drafting systems and top rollers for ring frames and speed frames. The transaction is expected to be completed in Q1 of 2012.

A.T.E, a diversified engineering group, is a leader in textile engineering with state-of-the-art manufacturing joint ventures, as well as representation of more than 50 world class principals. A.T.E. has been looking for opportunities to further consolidate its business in this field, whereby it can leverage its experience and expertise built over the last 70 years.

SKF will, as part of the divestment of its Textile Business, fully transfer the SKF technology used for manufacturing textile machinery components. A.T.E. will serve all existing and future customers with products manufactured based on SKF technology under the A.T.E. brand, which is synonymous with product reliability, performance and service.

As per the terms of the transfer of business, the manufacturing operation will be shifted to A.T.E.’s new state-of-the art set-up at Ahmedabad, for which building construction is in full swing. Key personnel from different SKF functions will also be transferred to A.T.E.and A.T.E. has commenced recruitment of remaining personnel, many of whom are under inplant training at SKF India’s Pune plant.

SKF and A.T.E. will also build-up and maintain adequate stock of all products before moving the manufacturing operation from Pune to Ahmedabad, to ensure uninterrupted supply of products during the period of transfer.

Explaining the planned acquisition, Anuj Bhagwati, Managing Director of A.T.E. said “Our decision to invest in this business comes after careful due diligence. SKF is a technology leader and A.T.E. has the domain expertise to leverage their textile technology platform. We are excited about this business coming under the A.T.E. umbrella, as it is consistent with A.T.E.’s vision to have only technologically superior products, and as we see great potential for this business both in India and the world”.