Samvardhana Motherson International announced that its board of directors has approved the acquisition of Fritzmeier Motherson Cabin Engineering’s remaining 50% stake from F Holdings GmbH, Austria. After the transaction is completed, Fritzmeier Motherson Cabin Engineering will become a wholly owned subsidiary of the company.
Fritzmeier Motherson Cabin Engineering develops, manufactures, and sells operator cabins, cover assemblies, and fabrications for off-road applications. The company’s revenue for the nine months ending December 31, 2022 (9M FY23) was Rs 144.4 crore. Fritzmeier Motherson is a profitable 50-50 joint venture in India between Samvardhana Motherson International (SAMIL) and F Holdings GmbH, Austria (JV Partner) that began in 2007. SAMIL will own 100% of the company after the transaction is completed.
The off-highway vehicle (agricultural, construction, etc.) industry in India is poised for significant growth, and after the transaction is completed, SAMIL will reap the full benefits of that growth. The target business revenue has increased by approximately 70% year on year in the first nine months of fiscal year 23. The transaction is being conducted for a cash consideration of Rs 110.7 crore. Samvardhana Motherson International primarily manufactures and sells automotive original equipment manufacturers components.