Superior Industries International, Inc. has acquired a minority stake in an Indian company that, like Superior, produces cast aluminum-alloy wheels. The value of Superior’s investment in Synergies Castings Ltd. was not released. Its stake amounts to 8.7% of the outstanding shares of the privately held company.
In addition to the initial investment, Superior said it entered into a definitive agreement to make additional equity investments in Synergies, up to a total of approximately 26% of Synergies’ total issued equity. That agreement is effective through by December 31, 2010, subject to certain conditions.
Synergies Castings produces aluminum wheels by low-pressure diecasting at a plant in Visakhapatnam, India. The castings are customized with a copper-nickel-chrome electroplating technology. Its products are supplied to Toyota, General Motors USA and Chrysler USA, among other automakers.
"We believe this is an excellent long-term investment opportunity, given the dynamic and growing automotive market in India," stated Superior chairman, CEO, and president Steven J. Borick.
Superior Industries produces cast aluminum wheels for Ford, General Motors, Chrysler, BMW, Mitsubishi, Nissan, Subaru, Toyota, and Volkswagen. Its six plants are at Fayetteville and Rogers, AR; Chihuahua, Mexico (three); and Buzavirag, Hungary.
Superior Industries Invests in Indian Wheel Manufacturer
Gains option to increase stake up to 26%