Auto components maker Samvardhana Motherson International Ltd on Thursday said its arm Samvardhana Motherson Automotive Systems Group BV will fully acquire French entity Cirma Entreprise SAS at an enterprise value of 7.2 million euros (nearly ₹65 crore). Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has signed a binding undertaking to acquire a 100% stake in Cirma Entreprise from Vinci Energies France, Samvardhana Motherson International said in a regulatory filing.
Cirma Entreprise is into aerospace, shipbuilding and allied industries. The cost of acquisition is pegged at an enterprise value of 7.2 million euros, it added.
On the rationale behind the acquisition, the company said Motherson will become a Tier 1 to Aerospace Original Equipment Manufacturer and proximity to OEM would open further avenues for growth. Also, it will help in diversification to electrical wiring and interconnect systems for aerospace, shipbuilding and other allied industries from an existing portfolio of aero structure components, machining etc, it added.
The acquisition is also aligned with the growth strategy and synergistic with the existing wiring harness capabilities of Motherson, and this transaction will also help the company in gaining access to the shipbuilding and allied industries, the filing said.