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Rane (Madras) Limited has acquired Precision Die Casting Inc, USA, which is in the business of manufacturing high-pressure aluminium die casting for auto applications.

The deal has been sealed at an enterprise value of $8.9 million and the cost of acquisition of the entire equity is at $1. Post the acquisition, the company will invest $2 million through the wholly-owned subsidiary as equity for making improvements in operations for turning around the profitability, said the company.

Part of $511 million Rane Group, one of the leading OE manufacturer and supplier for auto majors in India & Overseas, Rane (Madras) today informed NSE that the company's Board of directors have approved the proposed acquisition.

The company is planning to acquire 100 per cent of the equity shares of Precision Die Casting Inc., USA through its wholly owned subsidiary (WOS), which is being incorporated in The Netherlands.

Precision Die Casting is in the business of manufacturing high pressure aluminium die casting for automotive applications like steering and compressor related die casting components. Some of the major customers are TRW, JTEKT, Nexteer and Mahle.

The transaction is expected to close before March 31, 2016.

Precision Die Casting Inc was incorporated in 1959 and in 2014-15 it clocked a revenue of $29.48 million as compared to $31.28 million in 2013-14 and $23.08 million in 2012-13. The company has presence mainly in US.