Samvardhana Motherson International Limited (SAMIL), said its wholly owned subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has agreed to buy out French automotive supplier Faurecia's entire stake in SAS Autosystemtechnik GmbH having an enterprise value of €540 million ($577.5 million).
Cockpit module integrator SAS is a provider of assembly and logistics services for the automotive industry, Samvardhana Motherson International Limited (SAMIL), earlier known as Motherson Sumi Systems, said in an exchange filing. Its gross revenues were about €4.4 billion on principal basis with net revenues (IFRS) of €896 million for the year ended December 31, 2022, with almost half of it contributed by EV programs.
The transaction will be funded by a mix of debt and internal accruals, and the anticipated acquisition should be completed by Q2 of FY24, subject to usual regulatory approvals (July-September 23), it stated.
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The transaction will strengthen Motherson's position in the global automotive supply chain and increase its customer proximity.
Commenting of the deal, Vivek Chaand Sehgal, Chairman, Motherson, said, with a focus on EV vehicles, this acquisition will make Motherson Group a prominent global assembler of cockpit modules.
"By adding complementing capabilities which SAS brings, we will be able to further enhance our tier 0.5 position with our customers. With this acquisition, we will be even more diversified in our customer base and products. This acquisition will transform Motherson Group to be a leading assembler of cockpits modules globally, with special focus on EV models. We look forward to welcoming over 5,000 new members into the Motherson family," Sehgal said.
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