Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a 100% subsidiary of Samvardhana Motherson International, has entered into an agreement to acquire 100% stake in SAS Autosystemtechnik GmbH from Faurecia, a company of the Forvia Group.
A press release from the company said SAS is a leading global provider of assembly and logistics services for the automotive industry. This strong market position is founded on deep technical expertise. It has strong customer relationships with leading European and American OEMs, some of which span almost three decades. The company’s gross revenues were €4.4 billion on a principal basis, with net revenues (IFRS) of €896 million for the year ended December 31, 2022, with almost half of it contributed by EV programmes. The orders in hand already secured are of over €3 billion in cumulative net revenues over the next three years. It has over 5,000 employees in over 24 manufacturing locations in Europe, Asia, and America.
The transaction will be another step in further enhancing Motherson's integration into the global automotive supply chain and increasing its customer proximity. With its strong assembly, automation and logistics capabilities, SAS is well-positioned to benefit from the secular trend of outsourcing module assembly by OEMs to trusted suppliers.
The business's enterprise value is €540 million, and a mix of debt and internal accruals will fund the transaction. The transaction remains subject to information or consultation with employee representatives. Completing the envisaged transaction will be subject to customary regulatory approvals and is expected by Q2FY24.
Vivek Chaand Sehgal, Chairman, Motherson, said, “By adding complementing capabilities which SAS brings, we will be able to further enhance our Tier-0.5 position with our customers. With this acquisition, we will be even more diversified in our 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.'
NB: Photo is representational.
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