Italian fastener manufacturer Fontana Gruppo agreed to acquire a majority stake in auto component maker Right Tight Fasteners Pvt Ltd.

The deal involves Nashik, Maharashtra-based Right Tight taking over Fontana’s Indian operations, followed by Fontana buying a 60% stake in the combined entity for $114.4 million.

Fontana operates in India through Aurangabad, Maharashtra-based BG Fastening and Engineering Industries Pvt Ltd.

Right Tight’s management will lead the combined company, which will be one of the largest fastener manufacturers in India.

“The acquisition of RTF aligns perfectly with our long-standing localization strategy, building local facilities and organizations in key markets,” stated CEO Giuseppe Fontana. “India represents a growing economy of significant interest due to its scale and potential, and it serves as a gateway to the entire Far East.”

Founded by Balbir Singh Chhabra in 1979, RTF produces high-strength bolts and nuts in four factories across India to supply the automotive, agricultural, industrial, and construction sectors. Clients include Tata Motors, Mahindra & Mahindra, Ashok Leyland, Bajaj Auto, TVS Motor, Royal Enfield, and Ola Electric.

In fiscal 2023-24, RTF sales rose 20% to $82.4 million, while EBITDA grew 29% to $12 million.

Fontana is a $1.1 billion company operating 32 locations — including 21 factories — across Europe, the Americas, and India, employing over 5,000 people.

The transaction comes amid rapid consolidation of India’s auto components segment.