Comments
Auto components major Samvardhana Motherson International (SAMIL) on Friday said it is acquiring Australia’s Lumen Group and Deltacarb SA of Switzerland for around ₹575 crore.
The company’s board approved the two acquisitions by its wholly-owned arm Samvardhana Motherson Automotive Systems Group BV, SAMIL said in separate regulatory filings.
The acquisition of Lumen group is expected to be closed by the fourth quarter of FY2023-24, subject to satisfactory completion of all conditions precedent, it said.
The group is engaged in the design, manufacture and supply of Original Equipment Manufacturer (OEM)-certified automotive parts, accessories and dealer-fit products.
cost of acquisition
On the cost of acquisition, SAMIL said it is being carried out “an enterprise value of AUD 93 million (nearly ₹520 crore) equity value to be derived based on closing accounts adjustments for debt/ debt like items and working capital”.
There will be additional potential payouts based on achievement of operational performance in FY24 and FY27, the company said adding that through the acquisition of the Lumen group, SAMIL would gain entry into the OEM branded genuine accessories segment, which is a highly lucrative segment globally.
“The synergy between the product range presents an opportunity for cross-selling and also an opportunity to explore untapped business potential by upselling from its global locations to genuine accessories and dealer-fit segment,” SAMIL said.
Lumen Group comprises Lumen Australia Pty Ltd, Lumen International Holdings Pty Ltd (which further holds 100 per cent in Lumen North America, Lumen Thailand, Lumen Europe and 90 per cent in Lumen South Africa), Lumen Engineering Solutions Pty Ltd and Lumen Special Conversions Pty Ltd, it said.
However, it will not include Lumen South Africa and merger control approvals are required from the authorities in South Africa, the company added.
Deltacarb SA
On Deltacarb SA acquisition, SAMIL said the total purchase consideration is for a maximum 4.5 million CHF (around ₹43 crore) with around 10 per cent of the purchase consideration to be a deferred payout based on operating performance over next three years.
“In addition, SAMIL will be taking over net debt including lease liabilities (as of December 2022 approximately 1.2 million CHF),” it added.
Deltacarb SA is engaged in engineering, manufacturing and selling of special and standard tungsten carbide based products for various industrial applications such as stamping, wear resistant parts, metal working and mining. It has one manufacturing facility in Switzerland.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.