Motherson Sumi Systems Ltd (MSSL) on Friday said it has acquired a majority stake in Bengaluru-based CIM Tools, a leading supplier in the aerospace supply chain.
The deal marks the company’s entry into the aerospace industry.
As part of the deal, MSSL will acquire a 55 percent stake from the promoters of CIM Tools Pvt Ltd (CIM).
The three company founders, Srikanth GS, Umesh AS and Vishwanath Deshpande, will retain a 45 per cent stake in CIM and will continue to drive further growth, in partnership with MSSL.
This acquisition is our first significant step towards growth in the aerospace business.
"This is in line with our diversification strategy and will help us in strengthening our non-automotive business,” MSSL Chairman Vivek Chaand Sehgal said in a statement.
This will be the 27th acquisition by Motherson, and the company will continue to work towards adding more customers and products while serving diverse industries globally, he added.
MSSL, however, did not disclose the financial details.
CIM Group is engaged in machining and sub-assembly of components for the aerospace industry.
Currently, CIM has over USD 200 million cumulative booked business.
It reported a consolidated turnover of Rs 203 crore in the financial year 2019-20 and Rs 130 crore in the financial year 2020-21.
The transaction will provide MSSL, access to a customer base across the aerospace components supply chain along with specialised machining, treatment, and sub-assembly capabilities.
The proposed transaction is expected to be closed within three months, subject to receipt of necessary approvals.
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