Motherson Sumi Systems Ltd, the country's largest auto component maker and the flagship company of $5.2 billion Samvardhana Motherson Group (SMG), has agreed to acquire assets of Germany-based Schere r& Trier Group (S&T) for a consideration of €36 million (around $45 million), according to a stock market disclosure.
The company signed a definitive agreement through Samvardhana Motherson Automotive Systems Group BV, Netherlands, its subsidiary and JV company with Samvardhana Motherson International, with the German firm to acquire its assets including land, building and inventories, shareholding in Mexican entities.
The company also agreed to acquire two manufacturing facilities situated at Michelau (Germany) and Puebla (Mexico) from S&T’s administrator through its step down subsidiaries. As part of the acquisition, the employees of S&T would be joining Motherson Sumi.
The deal will help Motherson Sumi expand its product portfolio and consolidate its polymer business in Europe and North America.
“The acquisition reiterates the trust and confidence our customers place in us and will further strengthen the product portfolio of Motherson. S&T is a company with a strong technological know-how and well-established product line. The Group will get further enriched with the talented and experienced team which joins us as a part of this acquisition," said V C Sehgal, chairman, Samvardhana Motherson Group.
"The significant synergies between S&T's products and SMRP BV will allow Motherson to offer a more diversified range of polymer products to its customers," he added.
The acquisition, which is subject to regulatory approvals, is expected to be completed in January 2015.
S&T is into manufacturing of extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic which are supplied to automobile makers such as Audi, BMW, Daimler, Ford, General Motors and Volkswagen.
Recently, Motherson Sumi Systems agreed to buy out the wiring harness business of US-based Stoneridge Inc for $65.7 million expanding the company’s wiring harness business in North America.
Motherson Sumi, a JV between Samvardhana Motherson Group and Japan's Sumitomo Wiring Systems, is the largest supplier of electrical distribution system (EDS) to the Indian automotive industry, and has a presence in 25 countries.
(Edited by Joby Puthuparampil Johnson)