Motherson Sumi acquires French component maker Reydel, stock up 6%

Motherson Sumi gained as much as 6% in early morning deals after the auto component player acquired French component maker Reydel for $201 million.

At 10:00 am, the stock was trading at Rs 343, up 5.8%. The scrip opened at Rs 337 and had hit a high and low of Rs 343.8 and Rs 332 respectively in intra-day deals.

Reydel, a French company, clocked revenues of about $1 billion with an EBITDA of $68 million (provisional, and in accordance with US GAAP) for the year ended December 31, 2017. This acquisition will expand Motherson’s revenue by at least $1 billion, taking it