Samvardhana Motherson International, formerly known as Motherson Sumi Systems, on Thursday, announced that it will acquire a 100% stake in French-based Cirma Entreprise from Vinci Energies. The transaction is at an enterprise value of 7.2 million euros.
Motherson will acquire Cirma through its step-down subsidiary, Samvardhana Motherson Automotive Systems Group BV (“SMRPBV”).
The step-down subsidiary through one of its European subsidiaries has signed a binding undertaking to acquire a 100% stake Cirma.
The transaction is at an enterprise value of 7.2 million euros.
In its regulatory filing, Motherson said that 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 transaction is expected to be closed within a period of 6 months from the date of signing. Hence, Motherson expects the completion between October to December 2023.
Cirma Entreprise is engaged in the manufacturing and sale of Electrical Wiring and Interconnect Systems (EWIS) for aerospace, shipbuilding, allied Industries, etc. By the end of 2022, Cirma’s turnover was around 11.41 million euros.
Giving its rationale for acquiring Cirma, Motherson said that it plans to become Tier 1 to Aerospace OEM and proximity to OEM to open further avenues for growth.
Further, Motherson plans 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.
The deal is also aligned with the growth strategy and synergistic with the existing wiring harness capabilities of Motherson. Also, it is expected to help Motherson in gaining access to the shipbuilding and allied Industries.
On BSE, Motherson’s share price closed at ₹82.16 apiece down by 1.11%.
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Updated: 15 Jun 2023, 10:10 PM IST