M&A: Samvardhana Motherson’s subsidiary acquires 100% stake in SAS Autosystemtechnik
Transaction:
- Samvardhana Motherson Automotive Systems Group BV (SMRPBV) a 100 % subsidiary of Samvardhana Motherson International Limited (SAMIL) has entered into an agreement to acquire 100% stake in SAS Autosystemtechnik GmbH (Germany) (“SAS”) from Faurecia, a company of the FORVIA Group (an entity listed on Paris stock exchange).
- The deal is valued for Euro 540 Million (approx. Rs 4800 Crores)
About “SAS” Autosystemtechnik, Germany:
- Established in 1996 and in 2020 was acquired by Faurecia, company of the FORVIA Group.
- The company offers assembly and testing solutions across the automotive value chain, and is a globally leading provider of engineering, testing as well as JIT / JIS assembly and logistics solutions.
- The company has 24 facilities across 12 countries (Argentina, Brazil, China, Czech Republic, France, Germany, Mexico, Portugal, Slovakia, Spain, Turkey, and USA).
- The company’s gross revenues on principal basis were Euro 4.4 billion and net revenue (IFRS) of Euro 896 million for the year ended 31st Dec 2022 with almost half of revenue contributed by EV Programmes.
About SAMIL (Formerly Motherson Sumi Systems Limited) and SMRPBV:
- Samvardhana Motherson International Limited (SAMIL) is a diversified global manufacturing specialist and one of the largest automotive suppliers for OEMs.
- Motherson supports its customers from more than 300 facilities across 41 countries, with a team of over 150,000 dedicated professionals.
- The group recorded revenues of USD 10.5 billion for FY22 and is among the top 25 largest automotive suppliers worldwide.
Rationale:
- The enterprise value of the business is Euro 540 million and the transaction will be funded by a mix of debt and internal accruals.
- With this acquisition, Motherson will be more diversified in their customer base and products.
- This acquisition will transform Motherson Group to be a leading assembler of cockpits modules globally, with special focus on EV models.
- Transaction was done at EVEBITDA ratio of 5.3 for previous year.
- On announcement of transaction the stock prices of Samvardhana Motherson Automotive went up by 2% to Rs 84.
Acknowledgements:
RBI Bulletin (www.bulletin.rbi.org.in), SEBI (www.sebi.gov.in), NSE (www.nseindia.com), BSE (www.bseindia.com)
Disclaimer:
This material has been prepared by the personnel in Vora Corporate Finance which is Investment Banking arm of Vora Management Consultancy Private Limited and looks after Mergers & Acquisitions (M&A), Private Equity (PE), Fund Raising, Debt syndication and Valuations and is based out of Ahmedabad, Gujarat, India. Any views or opinions expressed herein are solely that of individual authors and may differ from view of Vora Management Consultancy Private Limited. This material is proprietary to Vora Management Consultancy Private Limited and is for your personal use only. Any distribution, copy, reprints or forward to others is strictly prohibited.
This material captures the information based on information available in the public domain, public announcements and sources believed to be reliable. Analysis contained herein is based on publicly available information and appropriate assumptions. This material is intended merely to highlight market developments and is not intended to be comprehensive and does not constitute strategic, investment, legal or tax advice. In no event Vora Management Consultancy Private Limited be liable for any use by any party or for any decision made or action taken by any party in reliance upon, or for any inaccuracies or errors in, or omissions from, the information contained herein and such information may not be relied upon by you for evaluating any transaction.
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