Daily News: November 10, 2014

KKR Provides Amtek Global Financing

Amtek Global Technologies and KKR’s credit business announced the signing of definitive agreements under which KKR will provide AGT with €235 million ($293 million) of financing to replace its existing bridge loan. This facility will also act as a catalyst to help integrate Amtek Auto’s existing international operations under the Singapore headquartered AGT.

The Amtek Group has annual turnover of over $2.7 billion and manages 65 world-class facilities. It has an extensive auto-product portfolio with a range of highly engineered components for passenger cars, commercial vehicles and two- and three-wheelers, and also caters to the non-auto sector. In recent years, the Amtek Group has expanded its operations both organically and through strategic acquisitions. AGT has 19 manufacturing facilities across Germany, Italy, UK, Brazil, Hungary, US and Mexico. AGT produces high-technology products including turbochargers, precision camshafts, valve train components, conrods, and safety fasteners. The Company contributes close to 40% of the Amtek Group’s revenues.

Kunal Sabharwal, CEO of Amtek Global Technologies, said, “This long-term financing solution is a significant milestone for Amtek’s international business. The flexibility it provides enables us to further scale our manufacturing platform and advance our global growth strategy to the benefit of our worldwide blue-chip customers and stakeholders. By leveraging its global teams, KKR has presented us with a one-stop solution to consolidate our financing facilities across Amtek’s international businesses. This financing is the beginning of a long-term partnership with KKR that will enable us to continue to develop new and exciting opportunities in the automotive components market.”

Marc Ciancimino, member and head of European Private Credit, said, “KKR seeks to provide tailored capital solutions to good companies with strong management teams and favorable growth prospects. We are pleased to expand our direct lending business to a global corporation of this high caliber and play a part in its continued success.”

BV Krishnan, a managing director in KKR’s India office, said, “Members of KKR came together globally to provide this long-term solution to Amtek. We started this conversation in India and continued to have productive discussions in Europe and the Americas to explore ways of providing the best source of flexible capital as a complete solution to meet the Company’s needs. Arvind Dham has created a world-class, and significantly scaled international auto components business, with a terrific management team. We are very happy with this progress and look forward to working with the Amtek team in the coming years.”

Amtek Auto is an integrated component manufacturers headquartered in India with truly global manufacturing facilities.