Jamna Auto Industries Proposes Acquisition of Owen Springs Limited to Secure UK Market Foothold

Jamna Auto Industries Proposes Acquisition of Owen Springs Limited to Secure UK Market Foothold​

Jamna Auto Industries Limited (JAI) has announced the proposal to acquire Owen Springs Limited, a long-established company in the UK's leaf spring aftermarket sector. This acquisition aims to provide JAI with a strategic platform for market expansion and sustained revenue growth within Europe.

The proposed deal involves the purchase of Owen Springs Limited, which is based in Rotherham and has been operating since 2004. The transaction includes purchasing the company along with its assets and network.

Strategic Value of Acquisition​

For Jamna Auto Industries, this acquisition represents a significant strategic move, marking JAI's first-ever acquisition. By securing a wholly owned platform in the UK leaf and parabolic spring aftermarket, JAI intends to capitalize on immediate market access and growth opportunities.

The company noted that this step aligns with its "Lakshya RISE 5000" ambition, providing potential exposure toward 40% of turnover from new markets. The existing network includes over 250 distributors, retailers, and garages, supported by a ready made network comprising more than 350 SKUs (Stock Keeping Units).

JAI aims to leverage this platform to cross sell its suspension and allied rubber products through Owen Springs' existing channels. The combined entity is envisioned as a scalable international platform, uniting JAI's manufacturing capabilities with Owen Springs’ established local distribution strength.

Target Company Profile and Market Standing​

Owen Springs Limited is described as one of Britain's longest established spring brands. They hold an estimated 8% share of the aftermarket spring business—a figure which management stated indicates significant headroom for growth within the sector.

The company serves various sectors, including commercial vehicles (LCV and HGV), heritage rail locomotives, agricultural, and classic vehicles. Owen Springs operates from Rotherham, providing excellent transport links to major UK ports and international markets.

Financial Snapshot of Owen Springs Limited​

Details regarding the proposed transaction include a purchase consideration of £2.00M. The target company carries no debt and possesses Net Current Assets valued at £735K. Valuation metrics provided for the acquisition included an EV/EBITDA of 8.2x on Reported CY 2025 EBITDA, and 6.1x on Adjusted CY2025 EBITDA.

The following table provides a financial overview of Owen Springs Limited across several fiscal years:

JAMNAAUTO Stock Price Movement​

Jamna Auto Industries Limited saw its stock surge today, settling at ₹132.67 after gaining 1.75%. The equity traded within an intraday range of ₹128.22 to ₹133.29, with a total volume of 1,657,697 shares recorded.