Samvardhana Motherson International Ltd has announced that its arm Samvardhana Motherson Automotive Systems Group BV will fully acquire French entity Cirma Entreprise SAS at an enterprise value of 7.2 million euros (nearly Rs 65 crore).
Auto components maker Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has signed a binding undertaking to acquire a 100 per cent stake in Cirma Entreprise from Vinci Energies France, Samvardhana Motherson International said in a regulatory filing.
Cirma Entreprise is into aerospace, shipbuilding and allied industries. The cost of acquisition is pegged at an enterprise value of 7.2 million euros, it added. On the rationale behind the acquisition, the company said Motherson will become a Tier 1 to Aerospace OEM (Original Equipment Manufacturer) and proximity to OEM would open further avenues for growth.
Also, it will help in diversification to electrical wiring and interconnect systems (EWIS) for aerospace, shipbuilding and other allied industries from an existing portfolio of aero structure components, machining etc, it added. The acquisition is also aligned with the growth strategy and synergistic with the existing wiring harness capabilities of Motherson, and this transaction will also help the company in gaining access to the shipbuilding and allied industries, the filing said.
The acquisition is also aligned with the growth strategy and synergistic with the existing wiring harness capabilities of Motherson, and this transaction will also help the company in gaining access to the shipbuilding and allied industries, the filing said.
Cirma Entreprise clocked a turnover of 11.41 million euros in the calendar year 2022. The transaction will be presented to the employees’ representatives’ body of Cirma Entreprise, and once agreed by Vinci Energies France, will be subject to customary closing conditions, the company said. The transaction will be presented to the employees’ representatives’ body of Cirma Entreprise, and once agreed by Vinci Energies France, will be subject to customary closing conditions, the company said.
(PTI input)
