Samvardhana Motherson Automotive Systems Group BV (SMRPBV) a 100 % subsidiary of Samvardhana Motherson International Limited (SAMIL) has entered into an agreement to acquire 100% stake in SAS Autosystemtechnik GmbH (Germany) (SAS) from Faurecia, a company of the FORVIA Group (an entity listed on Paris stock exchange).
“SAS” is a leading global provider of assembly and logistics services for the automotive industry. This strong market position is founded on deep technical expertise. It has strong customer relationships with leading European and American OEMs, some of which span almost 3 decades. It has more than 5,000 employees in over 24 manufacturing locations in Europe, Asia, and America.
The transaction will be another step further enhancing Motherson’s integration in the global automotive supply chain and increase its customer proximity. With its strong capabilities in assembly, automation and logistics, “SAS” is well positioned to benefit from the secular trend of outsourcing of module assembly by OEMs to trusted suppliers, the statement said.
The enterprise value of the business is Euro 540 million and the transaction will be funded by a mix of debt and internal accruals The transaction remains subject to information or consultation with employee representatives. Completion of the envisaged transaction will be subject to customary regulatory approvals and would be expected by Q2 FY24 (July-Sept 23), according to the statement.
Commenting of the deal, Vivek Chaand Sehgal, Chairman, Motherson said, “We have always added new products and technologies to closely serve our customers in a more cohesive way. The acquisition of SAS is an important step in this direction. 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”.
