Stock below Rs 100 makes a whopping Rs 1,070 Crore Acquisition of German Group!
The stock has witnessed significant buying activity in the last 3 years as it has surged more than 90 per cent.
On July 24, 2023, the shares of Samvardhana Motherson International Limited surged 0.5 per cent. The 52-week high and low are Rs 98.19 per share and Rs 61.84 per share, respectively on BSE.
Today, Samvardhana Motherson International Limited (SAMIL) and its wholly-owned subsidiary, 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.
Dr. Schneider Group is a renowned manufacturer specializing in advanced electronic interior polymer components and systems. Their cutting-edge products include smart surfaces and lighting modules, with a focus on air-vents and decorative interior polymer components featuring illumination.
With a strong presence in premium vehicles, the company operates in multiple countries with 4,500 employees and 7 facilities across Germany, Spain, Poland, USA, and China. With over 200 patents and a dedicated team of 240+ engineers, its R&D center in Germany drives innovation, developing more than 90 per cent of products in-house.
However, despite its innovative endeavors, the company faced challenges, leading to insolvency filing in September 22, after an unsuccessful operational and financial restructuring.
As a prominent Tier 1 supplier of polymer-based interior modules, Motherson has been actively collaborating with automotive OEMs to elevate the interior experience. The acquisition of Dr. Schneider Group presents significant synergies, as both companies share a common focus on aesthetics and interior illumination, which aligns with the rising trend of premiumization in the automotive industry.
By integrating Dr. Schneider's innovative electronic interior polymer components, Motherson can expand its offerings and cater to emerging markets and medium segment customers. Leveraging its established global presence and customer relationships, Motherson is well-positioned to introduce these cutting-edge technologies to a wider audience, further solidifying its leading role in the automotive interior solutions sector.
The acquisition of Dr. Schneider Group comes with an estimated enterprise value of approximately EUR 118.3 million (over Rs 1,070 crore). This strategic move is driven by our commitment to meeting the demands of our valued customers. The transaction is anticipated to be finalized in the third quarter of FY23-24.
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SAMIL (formerly known as Motherson Sumi Systems Limited) is a diversified global manufacturing specialist and a leading automotive supplier for Original Equipment Manufacturers (OEMs). It is among the largest and fastest-growing automotive suppliers worldwide. SMRPBV (Samvardhana Motherson Automotive Systems Group BV) is a 100 per cent subsidiary of SAMIL, playing a crucial role in the company's operations and growth.
The stock has witnessed significant buying activity in the last 3 years as it has surged more than 90 per cent. Investors to keep close eye on this trending stock.
Disclaimer: The article is for informational purposes only and not investment advice.