Motherson Sumi acquires auto biz unit of Abraham and Co

Auto component major Motherson Sumi Systems Ltd (MSSL) will be acquiring the automotive business unit of Abraham and Co Ltd in Hungary for about Rs 77 crore.
The acquisition is being carried out by MSSL Manufacturing Hungary Kft, an arm of MSSL Gmbh, which again is a subsidiary of MSSL.
"With this transaction, which is expected to be completed in October 2016, MSSL through its 100 per cent subsidiary...Would acquire the land, building, and machinery of Abraham and Co Ltd for a purchase price consideration of EUR 10.4 million," MSSL said in a BSE filing.
The company will also give on lease part of the acquired assets to SMR Hungary, a part of Samvardhana Motherson Group, it added.

Abraham and Co Ltd is an expert in plastic processing and high quality products for car makers across Europe, the filing said.
"The integration of this business would allow to generate a number of operational synergies with SMR. This acquisition will increase the in-house capability of SMR Hungary and therefore, will support SMR's position as a technology and market leader for automotive mirrors in Hungary and Europe," it said.
The acquired unit will be further expanded to achieve group synergies through supplies to SMR and to the new facilities being set up in Europe to meet demand for new orders from customers, it said.