Jamna Auto Industries Limited announces an acquisition

Owen Springs Limited reports its financials on a calendar-year (CY) basis rather than rolling TTM periods. For CY2025, Owen Springs reported revenue of £2.76 million (down from £3.165 million in CY2024 and £3.854 million in CY2023) ^[1]. Regarding profitability, Owen Springs generated an adjusted EBITDA of £483 thousand in CY2023, which turned negative at -£29 thousand in CY2024 ^[1], while reporting a Profit After Tax (PAT) of £132 thousand in CY2025 ^[2].

The £2 million cash consideration translates to reported EV/EBITDA multiples of 8.2x (unadjusted) and 6.1x (adjusted) ^[1].

Valuation Multiple Comparison

Analytical Implications and Caveats

• Valuation Discount: Owen Springs' acquisition multiples (6.1x to 8.2x EV/EBITDA) ^[1] represent a significant discount to Jamna Auto's core trading multiple (EV/EBITDA of ~13.04x) ^[3], reflecting smaller scale and a contracting top-line trajectory in the UK market.
• Earnings Volatility: Owen Springs experienced a revenue contraction from £3.85 million in CY2023 to £2.76 million in CY2025 alongside volatile profitability (EBITDA turning negative in CY2024) ^[1], making the adjusted multiple dependent on operational turnaround and synergy realization under Jamna Auto's *Lakshya – RISE 5000* strategy ^[5].

The acquisition of Owen Springs Limited is structured as a 100% share-purchase transaction rather than a selective asset-purchase agreement, meaning it involves acquiring the entire operating entity and its underlying business framework.

Key Transaction Details

• Acquisition Structure: Jamna Auto Industries’ Board of Directors approved the acquisition of the entire issued share capital (a 100% stake) of Owen Springs Limited, a company incorporated in England and Wales, from its existing shareholder OSL Group Holdings Limited for GBP 2 million ^[6].
• Nature of the Target: Owen Springs Limited is an established UK-based manufacturer specializing in leaf and parabolic springs ^[6]. Because the deal acquires the corporate entity outright, it encompasses the target's existing manufacturing capabilities, workforce, customer contracts, and ongoing operations.
• Strategic Objectives: Management positioned the acquisition as a strategic entry into the UK leaf and parabolic spring aftermarket to support the broader Lakshya–RISE 5000 international expansion strategy ^[6], ^[7]. Rather than merely acquiring isolated intellectual property or distribution channels, the corporate acquisition allows Jamna Auto to leverage existing product offerings, manufacturing assets, and established access to European customers ^[7].

Owen Springs Limited reported a Profit After Tax (PAT) of £132 thousand on revenue of £2.76 million (or £2,761 thousand) for the calendar year 2025 ^[2], yielding a net profit margin of approximately 4.78% (derived from £132 thousand PAT ^[2] and £2,761 thousand revenue ^[2]). By contrast, Jamna Auto Industries does not separately disclose the specific margin profile or profitability of its existing export segment in public filings. While third-party market commentary characterizes the UK aftermarket entry as targeting high-margin segments ^[8], exact quantitative margin comparison remains a disclosure gap.

Acquisition Financial Profile of Owen Springs

• Revenue Trajectory: Revenue contracted over the prior three calendar years, declining from £3,854 thousand in 2023 to £3,165 thousand in 2024, and settling at £2,761 thousand in 2025 ^[2].
• Profitability and Net Worth: Reported 2025 PAT stood at £132 thousand, backed by a net worth of £1,041 thousand ^[2].
• Transaction Consideration: Jamna Auto agreed to acquire 100% of Owen Springs for an all-cash consideration of £2.00 million from OSL Group Holdings Limited ^[5], subject to net current asset adjustments under the Share Purchase Agreement ^[9].

Cost-Advantage Assessment in the UK Aftermarket

• Logistics and Supply Chain: Acquiring an established UK-incorporated manufacturer and trader (operational since 2004) ^[9] provides a localized operational footprint in England and Wales. This structurally reduces long-distance ocean freight exposure, cross-border shipping friction, import duties, and extended lead times compared to shipping leaf and parabolic springs directly from Indian manufacturing plants.
• Market Access: The local entity serves as an established stocking and trading platform, enabling faster turnaround times for UK aftermarket customers.
• Disclosure Limits: Detailed landed-cost comparisons, unit economics, and plant-level cost breakdowns between Jamna's export model from India and Owen Springs' local UK production are not disclosed in corporate filings.