Auto component major, Samvardhana Motherson Automotive Systems Group BV (SMRPBV), said it is acquiring 100 per cent stake of Ichikoh Industries (a subsidiary of Valeo SE) at an enterprise value of Japanese Yen (JPY) 5.2 billion.

The acquisition is happening through its Vision systems division, and would be subject to customary closing adjustments for debt/debt-like items and working capital, the company said in a statement.  

The transaction includes Ichikoh’s mirror business (development and manufacturing of automotive mirrors and associated products) in Japan and China, catering largely to Japanese original equipment manufacturers (OEMs). The target business reported revenue of JPY 15.8 billion in 2021.

With this transaction Motherson will add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio, it said. 

“Inorganic growth is an integral part of our Vision 2025. With this acquisition, Motherson will acquire design and manufacturing footprint in Japan enabling closer coordination and stronger relationship with Japanese customers both for their local as well as global business. This will also help Visions Systems to expand its geographical reach in China and in its ability to grow business with Japanese OEMs," Vivek Chaand Sehgal, Chairman, Motherson said.

This will be the third acquisition under the Vision systems business division during the current five-year plan following acquisitions in Turkey and China. With this, Vision systems will achieve majority of its expansion objectives highlighted in the Group’s 2025 five- year plan, the company said.

The proposed deal is expected to be closed in six-eight months subject to completion of all conditions precedent, it added.

Related Topics
comment COMMENT NOW