Samvardhana Motherson to Acquire Stake Worth INR 207 Cr in Saddles International Automotive
Samvardhana Motherson International Ltd (formerly Motherson Sumi Systems Limited) announced plans to buy 51% of Saddles International Automotive and Aviation Interiors Pvt Ltd for Rs 207 crore.
According to an exchange filing, the companies intend to complete the acquisition within three to four months of the deal's signing.
Adjustments for debt, debt-like items, and working capital will be made to the enterprise value.
With the acquisition of Saddles International, Samvardhana Motherson will diversify its current business by entering the upholstery market for applications such as passenger vehicle seat covers, gear knob covers, and door panel wrapping, among others, supporting the company's vision of increasing content per car, according to the company.
Saddles International Automotive and Aviation Interiors Pvt Ltd. manufactures premium upholstery for applications such as passenger vehicle seat covers, gear knob covers, and door trim wrapping solutions. Over the next 4-5 years, Saddle International expects to generate 2,500 crores in revenue. According to the investor presentation, the company reported revenues of 320 crore in FY22, employs approximately 2,000 people, and operates seven facilities in India near OEMs.
In a separate press release, Samvardhana Motherson announced the merger of four wholly owned subsidiaries with the company via the NCLT route. The four subsidiaries are Motherson Consultancies Service, Motherson Invenzen Xlab, Samvardhana Motherson Polymers, and MS Global India Automotive.