Samvardhana Motherson International Limited (SAMIL) announced that its wholly-owned subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has agreed to purchase the entire stake in SAS Autosystemtechnik GmbH (Germany) held by French automotive supplier Faurecia for 540 million euros ($577.5 million).
SAS is a provider of assembly and logistics services for the automotive industry, according to an exchange filing by Samvardhana Motherson International Limited (SAMIL), formerly known as Motherson Sumi Systems. Its gross revenues were approximately 4.4 billion euros on a principal basis, with net revenues (IFRS) of 896 million euros for the fiscal year ended December 31, 2022, with EV programmes accounting for nearly half of it.
The transaction will be funded by a combination of debt and internal accruals, and it is expected to be completed by Q2 of FY24, subject to usual regulatory approvals (July-September 23).
Motherson’s position in the global automotive supply chain will be strengthened as a result of the transaction, as will its customer proximity.
“We will be able to strengthen our tier 0.5 position with our customers by incorporating SAS’s complementary capabilities. With this acquisition, we will have a more diverse customer base and product offering. This acquisition will position Motherson Group as a global leader in the assembly of cockpit modules, with a particular emphasis on EV models. We are excited to welcome over 5,000 new members to the Motherson family “Sehgal stated.