Noida-based automotive (auto) component manufacturer Samvardhana Motherson International (SAMIL) on Sunday announced it is buying SAS Autosystemtechnik (SAS), which manufactures auto cockpit modules, from French company Faurecia for Rs 4,790 crore.
“This acquisition will transform Motherson Group as a leading assembler of cockpit modules globally, with a special focus on electric vehicle (EV) models,” said Vivek Chaand Sehgal, chairman, SAMIL.
The EV business constitutes nearly half of the total net revenues of SAS. It manufactures cockpit modules and other components for EVs of European auto majors, such as Volkswagen, Škoda Auto, Mercedes-Benz, Porsche, Audi, and Chrysler.
About 60 per cent of SAS’ revenues come from Europe, 31 per cent from the Americas, and 9 per cent from China.
SAS’ acquisition - which needs clearance from the European Commission and merger control authorities of China, Brazil, Mexico, and the US - is expected to be closed between July and September this year, SAMIL informed BSE.
SAS employs about 5,000 people at 24 manufacturing facilities across 12 countries.
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“The enterprise value of the business is €540 million. The transaction will be funded by a mix of debt and internal accruals. The transaction remains subject to information or consultation with employee representatives,” read SAMIL’s statement.
SAS had a net turnover of about Rs 7,950 crore in 2022.
SAMIL - one of the leading auto component makers in India - manufactures wiring harnesses, vision systems, bumpers, door panels, instrument panels, etc.
“We have always added new products and technologies to closely serve our customers more cohesively. The acquisition of SAS is an important step in this direction. By adding complementing capabilities which SAS brings, we will be able to further enhance our tier 0.5 position with our customers,” said Sehgal.