Carlyle Builds Global Auto Components Powerhouse with Highway and Roop Acquisition
Deal News | Feb 13, 2025 | The Carlyle Group
Global investment firm Carlyle Group has concluded the acquisition of a controlling stake in India-based Highway Industries Limited and Roop Automotives Limited, forming a powerful platform in the manufacturing of auto components. This transaction, initiated by Carlyle Asia Partners, consolidates Highway and Roop's capabilities in producing essential parts for electric, hybrid, and internal combustion vehicles, across 15 product lines and an international client base spanning 17 countries. Carlyle's strategy involves leveraging synergies across the merged entities to drive innovation, scale, and an enhanced value proposition for customers worldwide. The founder stakeholders retain their interests in both firms, emphasizing their long-term commitment to the unified enterprise. The broader aim is to capitalize on India's burgeoning auto manufacturing sector, embedding technology and talent to bolster global competitiveness. The leadership team will be strengthened by Carlyle executives with significant industrial acumen, ready to drive the next phase of growth. Key advisory roles were played by KPMG, Trilegal, Kotak, and Deloitte among others in facilitating this strategic buyout.
Sectors
- Automotive Components Manufacturing
- Private Equity Investment
- Advanced Manufacturing
Geography
- India – The primary geographical focus, with Highway Industries Limited and Roop Automotives Limited being headquartered and operating in India.
- North America – Mentioned due to Highway and Roop’s clientele and business operations in the region.
- Europe – Roop has established clientele and exports in Europe, suggesting relevant geographical involvement.
Industry
- Automotive Components Manufacturing – The industry is relevant since Highway and Roop are involved in manufacturing components for both electric, hybrid, and internal combustion engine vehicles.
- Private Equity Investment – Carlyle Group, a global investment firm, is involved in this sector through its acquisition of Highway and Roop.
- Advanced Manufacturing – The operation of Highway and Roop incorporates advanced manufacturing techniques to produce precision components for the global automotive industry.
Financials
- US$32 billion – Total equity invested by Carlyle buyout funds in the Advanced Manufacturing sector.
- US$1.1 billion – Equity invested by Carlyle in Asia as part of its investment endeavors as of December 31, 2024.
- US$441 billion – Carlyle's assets under management as of December 31, 2024.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Carlyle Group | Bidding Company | Company | A global investment firm that has acquired controlling stakes in Highway and Roop. |
| Highway Industries Limited | Target Company | Company | An Indian manufacturer of powertrain components, with a history of over 50 years, serving global automotive markets. |
| Roop Automotives Limited | Target Company | Company | A leader in steering components manufacturing, it serves a global market and is headquartered in Haryana, India. |
| KPMG | Financial Advisor | Company | Acted as advisor to Carlyle and shareholders of Highway and Roop. |
| Trilegal | Legal Advisor | Company | Provided legal advisory services to Carlyle for the transaction. |
| Kotak | Financial Advisor | Company | Advised Carlyle during the acquisition process. |
| Deloitte | Advisor | Company | Served as a transaction advisor to Carlyle. |
| Amit Jain | Managing Director and Head of Carlyle India Advisors | Person | A representative of Carlyle Group overseeing the acquisition strategy in India. |
| Mohit Oswal | Managing Director of Roop and Non-Executive Chairperson | Person | Manages Roop and is designated as the Non-Executive Chair of the new platform. |
| Umesh Munjal | Managing Director of Highway | Person | Leads Highway with a focus on technological growth and customer success. |
| Mark Blaufuss | Operating Executive at Carlyle | Person | Brings over 30 years of leadership experience to the platform's Board of Directors. |
| Kishore Saletore | Board Member of Platform Entity | Person | Former Executive Director and Group CFO at Bharat Forge Limited, contributing diverse industry experience. |