Motherson inks pact to acquire Reydel Automotive for $201 mn
Auto component maker Motherson Sumi Systems Ltd (MSSL) today said it has inked a pact to acquire interior components and modules manufacturer Reydel Automotive Group (Reydel) for USD 201 million (over Rs 1,307 crore).
Samvardhana Motherson Automotive Systems Group B V (SMRP BV), a step down subsidiary of MSSL has proposed to acquire Reydel, a privately held portfolio company of Cerberus Capital Management, L.P. (Cerberus) , the company said in a statement.
The acquisition, which is Samvardhana Motherson Group's 21st buy till date, intends to further bolster its offerings in the automotive interior space.
Reydel manufactures interior components and modules for global automotive customers.
"The synergistic combination of complimentary portfolios will create a stronger business. We are very excited about this partnership," Samvardhana Motherson Group Chairman Vivek Chaand Sehgal said in a statement.
The acquisition brings the company closer to meet 2020 targets, he added.
"We look forward to joining the Samvardhana Motherson Group, and this transaction would ensure that we will have excellent opportunities as part of one of the world's leading suppliers to the automotive industry," Reydel CEO Benoit Rolland said.
Reydel's interiors product portfolio includes instrument panels, door panels, console modules, decorative parts and cockpit modules.
The company's global presence spans 20 plants and 16 countries, and is supported by a workforce of around 5,650 associates.
Reydel's revenue for the year ended December 31, 2017 stood at USD 1,048 million.
The transaction is expected to close within the next four to six months.
Shares of MSSL today ended 4.01 per cent up at Rs 324.25 on the BSE.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.