Commercial Vehicle Group (CVGI) Acquires Vijayjyot Seats in $15.9M Deal
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Commercial Vehicle Group, Inc. (Nasdaq: CVGI) announced that its company in India, CVG Seating (India) Private Limited (CVG India), has acquired substantially all of the seat assembly assets of Vijayjyot Seats Private Limited (Vijayjyot). The acquired business has three leased facilities in the Baska (State of Gujarat), Pune (State of Maharashtra) and Dharwad (State of Karnataka) regions of India and employs approximately 108 full time associates in addition to certain temporary workers at each of the three facilities.
The acquired business supplies seats primarily for the passenger, school and coach bus markets in India and its top four customers include Tata Motors, Tata Marcopolo, Ashok Leyland and Volvo/Eicher.
Vijayjyot Seats Private Limited will continue as a stand-alone business as a supplier of certain materials and components for other customers and markets in India, as well as a supplier to CVG India for the acquired seat business.
Total upfront cash consideration for the transaction was approximately $13.7 million, with an additional maximum earn-out potential of up to approximately $1.9 million based on EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) performance during the first two years of the acquisition. For the full year 2013, the Company expects the acquisition to achieve revenues of approximately $28.0 million, operating income of approximately $1.4 million and depreciation and amortization expense of approximately $1.0 million. The Company expects the acquisition to be incremental to earnings per share by approximately $0.03 per share for the full year 2013.
For the remainder of 2012, the Company expects revenues from the acquisition to be approximately $3.0 million, operating income of approximately $0.1 million and depreciation and amortization expense of approximately $0.1 million.
The acquired business supplies seats primarily for the passenger, school and coach bus markets in India and its top four customers include Tata Motors, Tata Marcopolo, Ashok Leyland and Volvo/Eicher.
Vijayjyot Seats Private Limited will continue as a stand-alone business as a supplier of certain materials and components for other customers and markets in India, as well as a supplier to CVG India for the acquired seat business.
Total upfront cash consideration for the transaction was approximately $13.7 million, with an additional maximum earn-out potential of up to approximately $1.9 million based on EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) performance during the first two years of the acquisition. For the full year 2013, the Company expects the acquisition to achieve revenues of approximately $28.0 million, operating income of approximately $1.4 million and depreciation and amortization expense of approximately $1.0 million. The Company expects the acquisition to be incremental to earnings per share by approximately $0.03 per share for the full year 2013.
For the remainder of 2012, the Company expects revenues from the acquisition to be approximately $3.0 million, operating income of approximately $0.1 million and depreciation and amortization expense of approximately $0.1 million.
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