Corporate Acquisition
Jamna Auto Industries to Acquire UK’s Owen Springs in Strategic Entry into Leaf Spring Aftermarket
NSE
JAMNAAUTO
BSE
520051
- Jamna Auto Industries Limited (JAI) has announced the proposed acquisition of Owen Springs Limited, a UK-based leaf spring manufacturer and aftermarket distributor.
- The transaction marks JAI’s first-ever acquisition and provides the company with a wholly owned platform in the UK commercial vehicle aftermarket.
- The acquisition aligns with JAI’s Lakshya RISE 5000 strategy, supporting its objective of generating 40% of revenue from new markets, exports and the aftermarket.
PRICE-SENSITIVE TRIGGER
Event: Jamna Auto Industries unveiled its Investor Presentation outlining the proposed acquisition of Owen Springs Limited, incorporated in England and Wales.
Type: Corporate Acquisition
Impact: Positive
Immediate Effect: The acquisition provides JAI with an established distribution network, local manufacturing capability and direct access to the UK leaf spring aftermarket, strengthening its international expansion strategy.
Metrics:
Key Financial Metrics:
- Purchase Consideration: £2.00 million
- Net Current Assets Acquired: £735,000
- Debt Assumed: Nil
- Ownership: 100%
- Funding Source: Internal accruals (no external debt)
- Shareholder Dilution: None
- Reported EV/EBITDA (CY2025): 8.2x
- Adjusted EV/EBITDA (CY2025): 6.1x
- Owen Springs CY2025 Revenue: £2.761 million
- CY2025 EBITDA: £244,000
- Adjusted CY2025 EBITDA: £330,000
Highlight:
- The acquisition is fully funded through internal accruals, involves no debt or equity dilution, and provides Jamna Auto with a wholly owned UK platform to accelerate international aftermarket growth.
What Happened ?
Jamna Auto Industries announced its proposed acquisition of Owen Springs Limited, one of Britain’s established leaf spring brands headquartered in Rotherham, South Yorkshire. The transaction represents JAI’s first overseas acquisition and establishes a direct presence in the UK commercial vehicle aftermarket.
The company expects the acquisition to accelerate its international expansion by combining JAI’s manufacturing scale and engineering capabilities with Owen Springs’ established brand, local team and distribution network. The platform will also enable faster deliveries, cross-selling of suspension and allied products, and stronger customer access across the United Kingdom.
key details
Strategic Benefits of the Acquisition:
- Marks Jamna Auto Industries’ first-ever acquisition.
- Establishes a wholly owned UK platform in the leaf and parabolic spring aftermarket.
- Supports the company’s Lakshya RISE 5000 growth strategy targeting 40% of turnover from new markets, exports and aftermarket businesses.
- Owen Springs offers a portfolio of 350+ SKUs covering light commercial vehicles (LCVs), heavy commercial vehicles (HCVs), agricultural vehicles, heritage rail locomotives and classic vehicles.
- The company serves approximately 250 distributors, retailers and garages across the UK.
- Existing local warehousing and distribution infrastructure will enable faster delivery of JAI products.
- Creates opportunities to cross-sell JAI’s suspension products, axles, stabiliser bars and future rubber products through Owen Springs’ distribution network.
- Owen Springs currently manufactures around 20% of sales volume in-house, with the balance outsourced, providing scope for operational efficiencies after integration.
- The business is ISO 9001 certified and has an established reputation in the UK aftermarket.
Note:
- The proposed acquisition gives Jamna Auto immediate market access rather than building a distribution network from scratch.
- By integrating its manufacturing capabilities with Owen Springs’ established customer relationships and local presence, the company aims to create a scalable international platform capable of supporting long-term revenue growth and improved profitability.
Risk Analysis
Summary:
- While the acquisition strengthens Jamna Auto’s international strategy, the long-term value creation will depend on successful integration, execution of cross-selling initiatives and growth within the UK aftermarket.
Key Risks:
- Owen Springs reported declining revenue over recent financial years, requiring business turnaround and growth initiatives.
- Realising expected synergies depends on successful integration of operations and distribution.
- Future earnings contribution will depend on expansion of product offerings and customer acquisition in the UK market.
- Currency fluctuations between the Indian Rupee and British Pound may affect financial performance.
- Demand conditions in the UK commercial vehicle aftermarket could influence future growth.
Worst Case:
- If integration takes longer than expected or UK aftermarket demand remains weak, the anticipated revenue growth and margin improvements from the acquisition could be delayed despite the strategic benefits of establishing a UK presence.
Risk Level: Medium
Company Commentary
- The acquisition represents a strategic entry into the UK leaf spring aftermarket.
- JAI will acquire 100% ownership of Owen Springs Limited.
- The transaction will be funded entirely through internal accruals, with no external borrowing or shareholder dilution.
- Management believes the combination of JAI’s manufacturing capabilities and Owen Springs’ trusted UK brand and distribution network will create a margin-accretive, scalable international growth platform.
- The acquisition supports the company’s Lakshya RISE 5000 vision of increasing revenue contribution from new markets, exports and aftermarket businesses.
Official Exchange Filing: Jamna Auto Industries Limited
