Motherson Sumi Systems Limited (MSSL) announced the acquisition of a majority stake in CIM Tools Private Limited, a Bengaluru-based aerospace supply chain company.
This milestone acquisition will mark MSSL’s entry into the aerospace industry, the company said in its statement.
MSSL will acquire 55% stake from the promoters of CIM Tools Private Limited (CIM). CIM in turn will hold 83% in Aero Treatment Private Limited (ATPL) and currently holds 49.99% in Lauak CIM Aerospace (JV with Lauak International, LCA). CIM, ATPL and LCA are hereinafter referred to as “CIM Group”, the statement said.
The three founders, Srikanth GS, Umesh AS and Vishwanath Deshpande, will retain 45% stake in CIM and will continue to drive further growth, in partnership with MSSL, a statement added.
CIM is engaged in machining and sub-assembly of components for the aerospace industry. ATPL is a vertically integrated unit engaged in surface treatment of machined parts and LCA is engaged in hard metal machining, it said.
The transaction will provide MSSL, access to a pedigreed 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 3 months, subject to receipt of necessary approvals, the statement said.
Commenting on the deal, Vivek Chaand Sehgal, Chairman, Motherson said, “This acquisition is our first significant step towards growth in aerospace business. This is in line with our diversification strategy and will help us in strengthening our non-automotive business. This will be the 27th acquisition by Motherson, and we will continue to work towards adding more customers and products while serving diverse industries globally.”
Srikanth G S, Umesh A S and Vishwanath Deshpande- The Promoters of CIM Tools Pvt. Ltd. said “We are delighted about the strategic partnership between CIM and Motherson. Both companies are aligned in their business objectives, vision, and philosophies. Together with the support of Motherson and established credentials of CIM Tools, we are confident that we will be able to offer a wider set of solutions to our customers, thus enhancing value for all stakeholders”
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