Auto components maker Samvardhana Motherson International Ltd on Monday said it will acquire assets and shares of Germany's Dr Schneider Group entities at an overall enterprise value of about 118.3 million euros (over Rs 1,070 crore).
The company through its wholly-owned arm Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has entered into an agreement to acquire assets and shares of the Dr Schneider Group entities from the insolvency administrator, Dr Joachim Exner, the company said in a regulatory filing.
Dr Schneider Group is a manufacturer of high-end, innovative, and integrated electronic interior polymer components and systems such as smart surfaces and lighting modules. It is a technology leader in air-vents, decorative interior polymer components with illumination and has a strong presence in premium vehicles. It employs around 4,500 people in seven facilities across five countries (Germany, Spain, Poland, USA, China), it added.
On the cost of acquisition, the company said it is being carried out at an overall enterprise value of approximately 118.3 million euros subject to certain customary adjustments and actualisations.
The estimated enterprise value for assets purchased in Germany subject to certain actualisations is 69.1 million euros and the same for shares of overseas subsidiaries is 49.2 million, it added.
"We see a lot of synergies and untapped potential in this business, especially on the R&D side. We are looking forward to welcoming 4,500 people on our journey towards our Vision 2025 and beyond," Motherson Chairman Vivek Chaand Sehgal said.
Dr Schneider Group has a strong focus on R&D and product innovation, resulting in over 200 patents, Motherson said, adding more than 90 per cent of its products have been developed in-house by a dedicated team of over 240 engineers, operating out of its fully equipped R&D centre in Germany.
"With this acquisition, Motherson will also gain access to innovative electronic interior polymer components and can offer these innovations and technologies to other emerging countries and to medium segment customers by leveraging its existing global footprints and customer relationships," the company said.