Motherson Sumi Systems (MSSL) is the flagship company of the Samvardhana Motherson Group (SMG), announced that the Samvardhana Motherson Automotive Systems Group B.V., Netherlands (SMRP BV), company's subsidiary and joint venture with Samvardhana Motherson International has announced signing of an agreement for purchase of assets of Scherer & Trier group (S&T), Germany from its administrator through its step down subsidiaries.
The consideration payable is approx. Euro 36 million for the assets including land and building & inventories along with the shareholding held in Mexican entities.
This acquisition includes 2 manufacturing facilities situated at Michelau (Germany) and Puebla, (Mexico)
The acquired entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to OEMs like Audi, BMW, Daimler, Ford, GM, VW etc. along with other customers.
It also has a strong vertical integration including state-of-the-art tool room for injection moulding tools, process engineering and in-house material development capabilities.
The current turnover of ''Scherer & Trier'' is in the range of Euro 240 million. This acquisition further consolidates MSSL’s polymer business in Europe & North America.
The deal is subject to completion of regulatory approvals and is expected to be completed in the month of January 2015.
Commenting on the acquisition, V C Sehgal, chairman, Samvardhana Motherson Group said, ''This acquisition reiterates the trust and confidence our customers place in us and will further strengthen the product portfolio of Motherson. S&T is a company with strong technological know-how and a well-established product line. The Group will get further enriched with the talented and experienced team which joins us as a part of this acquisition. The significant synergies between S&T's products and SMRP BV, will now allow Motherson to offer a more diversified range of polymer products to its customers.''
Shares of the company declined Rs 4.45, or 1.07%, to trade at Rs 410.50. The total volume of shares traded was 101,599 at the BSE (11.03 a.m., Tuesday).
