Auto components major Motherson Sumi Systems Ltd (MSSL) on Wednesday said it has successfully completed the acquisition of a majority stake in Bengaluru-based CIM Tools Private Ltd.
In October last year, MSSL had announced acquiring a 55 percent stake in CIM Tools Private Limited, which is a leading supplier in the aerospace supply chain.
CIM in turn holds 83 percent stake in Aero Treatment Private Ltd (ATPL) and 49.99 percent stake in Lauak CIM Aerospace, which is a joint venture with Lauak International, LCA. ATPL is a vertically integrated unit engaged in surface treatment of machined parts.
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The three founders — Srikanth GS, Umesh AS and Vishwanath Deshpande —will retain the remaining 45 percent stake in CIM, MMSL said in a release. "We are delighted that all acquisition related formalities have now been completed, and we are happy to welcome CIM Tools to the Motherson family. Apart from our continued focus on the automotive business, we are always looking to expand our non-automotive businesses as well," Chairman of Motherson Vivek Chaand Sehgal said.
CIM's order book has grown 26 percent to USD 252 million since the initial announcement in October, MSSL said.
This acquisition marks MSSL's entry into the aerospace industry. It provides the company with access to an existing and well established customer base. The successful closure of this acquisition is another step forward in the diversification strategy of Motherson, the company said.
"The successful closure of the transaction is mutually beneficial for CIM Tools and Motherson. CIM Tools' existing capabilities coupled with Motherson's manufacturing expertise and global presence will enable in providing enhanced solutions and creating additional value for customers," the release said quoting Srikanth, Umesh, and Deshpande.
