Samvardhana Motherson acquires assets and shares of the Dr. Schneider Group entities

“We have been trusted upon by our customer to take over this business. With their continued support we believe we will be able to turnaround this business like we have done every time in the past. We see a lot of synergies and untapped potential in this business, specially on the R&D side. We are looking forward to welcoming 4,500 people on our journey towards our Vision 2025 and beyond”, says Vivek Chaand Sehgal, Chairman, Motherson in a press release to the stock exchanges.

The deal will help to drive long term competitiveness by increasing content per car through vertical integration in Motherson’s interior offerings. Dr. Schneider Holding GmbH is a technology leader in air-vents, decorative interior components with illumination, with strong presence in premium vehicles. Further, the deal has the potential to leverage the premium end product capabilities to supply to other global customers of Motherson.

The acquisition is at an attractive valuation with price to book of less than

0.5 times. The transaction is expected to be competed in the third quarter of FY24.

The management while interacting with CNBC-TV18 said the  acquisition should be Earnings Per Share (EPS) accretive from day 1 and is confident to make the acquired asset profitable. The acquired company had EUR 200 million debt when it filed for insolvency, which has now reduced to EUR 20 million.

Earlier this month, Samvardhana Motherson made an investment of $14 million in Prysm Systems engaged in the design, development, manufacturing and sale of large-format touch-enabled display screens with embedded collaborative software.

The shares of Samvardhana Motherson are trading flat on NSE in the last hour of trade.