Samvardhana Motherson gains on acquiring Germany-based SAS Autosystemtechnik

Samvardhana Motherson International advanced 3.27% to Rs 82.15 after the company's announced the signing of an agreement by its subsdiary to acquire SAS Autosystemtechnik for 4.4 billion euros.

Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a 100 % subsidiary of Samvardhana Motherson International (SAMIL), has entered into an agreement to acquire 100% stake in SAS Autosystemtechnik GmbH (Germany) (SAS) from Faurecia, a company of the FORVIA Group.

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 3 decades.

The company's gross revenues were approximately 4.4 billion euros on principal basis with net revenues (IFRS) of 896 million euros for the year ended 31 December 2022, with almost half of it contributed by EV programs.

The orders in hand already secured are of over approximately 3 billion euros in cumulative net revenues over the next 3 years. It has more than 5,000 employees in over 24 manufacturing locations in Europe, Asia, and America.

The transaction will be another step further enhancing Motherson's integration in the global automotive supply chain and increase its customer proximity.

With its strong capabilities in assembly, automation and logistics, SAS is well positioned to benefit from the secular trend of outsourcing of module assembly by OEMs to trusted suppliers.

The enterprise value of the business is 540 million euro and the transaction will be funded by a mix of debt and internal accruals.

The transaction remains subject to information or consultation with employee representatives. Completion of the envisaged transaction will be subject to customary regulatory approvals and would be expected by Q2 FY24 (July-Sept 23).

Vivek Chaand Sehgal, chairman, Motherson said, We have always added new products and technologies to closely serve our customers in a more cohesive way. 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.

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.

Samvardhana Motherson International is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers.

On consolidated basis, the company's net profit from continuing operations soared 121.61% to Rs 500.73 crore in Q3 FY23 as against Rs 225.95 crore in Q3 FY22. Revenue from operations rose 25% year on year (YoY) to Rs 20,226 crore in the quarter ended 31 December 2022.

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