ACQUISITION: Sundram Fasteners to Buy Peiner Fastener Firm in Germany

Jason Sandefur

India-based Sundram Fasteners Ltd. is negotiating with Textron Fastening Systems to buy TFS subsidiary viz. Peiner Umformtechnik GmbH, Peine, Germany (Peiner). \
Peiner employs 300 workers and manufactures fasteners for the automobile, industrial and construction industries. Customers include DaimlerChrysler and Volkswagen.
“Textron Fastening Systems has just begun negotiations with Sundram with the objective of reaching agreement on a contract for the sale of the business to them,” TFS communications director Tim Weir told FIN.
Weir said negotiations likely will take several weeks, but could possibly conclude as early as the end of this month. TFS has been looking to sell Peiner since May 2004, when TFS announced its intention to divest several operations, Weir explained.
Should the deal be approved, Sundram is looking to complement Peiner in serving its clients in Germany as well in Europe, company president V. Jagannathan told The Hindu.
The Peiner acquisition isn”t Sundram”s first foray in Europe. In 2004 Sundram acquired Dana Spicer Europe”s precision forgings business at Cramlington, U.K. Sundram is also working on a German joint venture with with Bleistahl Produktions GmhH to create Sundram Bleistahl Pvt. Ltd.
The Peiner facility was founded in 1921 to produce metal screws, nuts and railway fasteners. TFS purchased the business in 1998, adding secondary machining equipment to produce high-value engineered parts. �2005 FastenerNews.com