Samvardhana Motherson International’s arm -- Samvardhana Motherson Automotive Systems Group BV, through one of its European subsidiaries, has signed a binding undertaking to fully acquire French entity - Cirma Entreprise SAS from Vinci Energies France. Cirma Entreprise is into aerospace, shipbuilding and allied industries. The cost of acquisition is pegged at an enterprise value of 7.2 million euros (nearly Rs 65 crore).
Motherson will become a Tier 1 to Aerospace OEM (Original Equipment Manufacturer) and proximity to OEM would open further avenues for growth. Also, the acquisition will help in diversification to electrical wiring and interconnect systems (EWIS) for aerospace, shipbuilding and other allied industries from an existing portfolio of aero structure components, machining etc. 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.
Samvardhana Motherson International is one of the world’s leading specialized automotive component manufacturing companies for OEMs. The company, formerly known as Motherson Sumi Systems was established in 1986 as a joint venture with Sumitomo Wiring Systems.
