Moneycontrol Bureau
Shares of Motherson Sumi Systems gained as much as 4 percent intraday Tuesday as the automotive parts maker's subsidiary will acquire Germany's Scherer & Trier.
"Samvardhana Motherson Automotive Systems Group BV, Netherlands (SMRP BV), company’s subsidiary and joint venture with Samvardhana Motherson International has signed an agreement for purchase of assets of Scherer & Trier group (S&T), Germany from its administrator through its step down subsidiaries," said the company in its filing.
The consideration payable is about 36 million euros (about Rs 283 crore) for the assets including land, building and inventories along with its shareholding in Mexican entities. "This acquisition includes two manufacturing facilities situated at Michelau (Germany) and Puebla (Mexico)," Motherson Sumi said in a statement today.
The acquisition would further consolidate Motherson Sumi System's "polymer business in Europe and North America". The current turnover of Scherer & Trier is in the range of 240 million euros.
Samvardhana Motherson Group Chairman V C Sehgal said the acquisition would further strengthen its product portfolio. "S&T is a company with strong technological know-how and a well-established product line... The significant synergies between Scherer & Trier's products and SMRP BV, will now allow Motherson to offer a more diversified range of polymer products to its customers," he noted.
The German entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to Original Equipment Manufacturers like Audi, BMW, Diamler, Ford, GM, VW etc, along with other customers," the statement said.
Subject to regulatory approvals, the deal is expected to be completed in January 2015. Motherson Sumi offers a range of products such as wiring harnesses, rear view mirrors, moulded plastic parts, including car interior and exterior parts.
While the acquired company is not profit-making yet, it will be earnings per share (EPS) accretive from the first year itself, says Vivek Chand Sehgal, chairman, Motherson Sumi Group.
He adds that the acquisition is debt-free and another similar deal is on the anvil.
At 09:41 hours IST, the stock was quoting at Rs 411.30, up Rs 7.30, or 1.81 percent on the BSE.
(With inputs from PTI)
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