STEZZANO, ITALY — Brembo has signed an agreement with Bosch Chassis Systems India Ltd. for the acquisition of 50 percent of KBX motorbike Products Private Ltd (KBX), based in Pune (India), until now a 50-50 joint-venture. KBX Motorbike Products Private Ltd. makes disc brake systems for motorbikes in India.
The agreed upon price for the business is approximately $14 million. The acquisition is expected to be executed by the end of this year, after completing the mandatory legal fulfillments required by the Indian Law.
KBX, a leader in development and production of brake systems in India, was established in February 2006 as a 50-50 joint-venture between Brembo and Bosch. The 2008 expected sales are approximately $22 million. KBX has no financial debt. KBX has about 220 associates in the new plant of Pune.
KBX holds a 50 percent market share of motorbike brake systems manufactured in India and its main clients are the leading local as well as international companies such as Bajaj, Hero Honda, Honda Motors, Yamaha, Suzuki and Royal Henfield.
"This acquisition is another important step for the growth Brembo in a fast growing market; Brembo will continue to search further development opportunities also in other segments of its core business," said Alberto Bombassei, chairman of Brembo S.p.A.
Brembo, which has been active in India since 2007, also has a design center there to support group R&D activities.
