Samvardhana Motherson Automotive Systems Group BV (SMRPBV) on January 18 announced the acquisition of a majority stake in two Turkey-based makers of moulded parts, sub-assemblies for mirrors and lighting systems for a base enterprise value of 21.78 million euros.
SMRPBV will acquire a 75 percent stake in Plast Met Plastik Metal San. İmalatveTic.A.Ş.(PM-Bursa) and Plast Met Kalıp San.veTic.A.Ş.(PM-Istanbul), together known as Plast Met Group (Turkey) through its subsidiary Samvardhana Motherson Reflectec (SMR). The balance of stake will be held by Plast Met’s founder Erol Senol who will continue with the company.
Plast Met also has capabilities to manufacture high-end complex injection moulding tools which cater to customers in Turkey as well as other global markets, Motherson Sumi said.
The final purchase price will be determined at closing including but not limited to certain identified capex items, employee liabilities, shareholder balances, income tax balances, working capital normalisation, and cash and debt positions. The combined revenues of the target companies were 33.4 million euros in 2019.
This acquisition will mark SMR and Motherson group’s entry into Turkey which has a vehicle market of 1.4 million units annually. The proposed deal is expected to be closed within three months subject to receipt of necessary approvals and is expected to be EPS accretive, Motherson said.
“Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4mn units and a long-term growth potential. Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve group’s customers in the European region,” added Motherson Sumi.
Vivek Chaand Sehgal, Chairman, Motherson Group, said, “This is the 25th acquisition by Motherson Group. Turkey will be the 42nd country in Motherson’s global operations, which is in line with our philosophy of 3CX10.” 3CX10 means no component, no country, no customer will be more than 10 percent of the company's turnover.
This Turkish acquisition comes less than three months after the company acquired the electrical wiring interconnection systems business of Bombardier Transportation in Mexico for $10 million.
In November, senior company officials of Motherson Sumi disclosed that the company is pursuing multiple buyout deals, some of which will be made public in the final quarter of the year.
The buyouts are a part of the company’s vision of tripling revenues by FY25 to $36 billion from $12 billion under the Vision 2025 plan.