Samvardhana Motherson International Ltd. has announced its acquisition of an 81% stake in Yachiyo Industry's four-wheeler business from Honda Motor Co.
The stake will be acquired through Samvardhana Motherson Automotive Systems Group BV, a wholly-owned subsidiary of the company.
Honda Motor will retain a 19% stake in the business. However, Yachiyo's two-wheeler business (housed under Goshi Giken) will be transferred to the Japanese automaker before the acquisition.
Headquartered in Tokyo, Yachiyo Industry makes sunroofs, plastic and steel fuel tanks, and plastic products. The company's four-wheeler business has served as a long-term supplier of these components to Honda Motor, catering to its requirements at each manufacturing location.
The close proximity to Honda Motor plants across the globe provides an opportunity to offer existing products from Motherson to Honda Motor globally, the company said in a release.
The Motherson Group company expects sunroof systems to have high growth potential globally due to an increase in demand and forecasts a surge in application across car segments. The transition to hybrids will continue to see the use of plastic fuel tanks, it said.
"These new product segments are in line with our increasing content per car strategy as well as our customer-centric approach. We believe this business will be highly synergistic with Motherson’s existing portfolio as we see ample opportunities to grow this new business globally by leveraging our global relationships with automotive OEMs," Vivek Chaand Sehgal, chairman at Motherson, said in a statement.
Yachiyo's four-wheeler business employs 3,200 employees across 13 manufacturing facilities and three R&D centres across eight countries. It reported revenue of 116 billion yen, or 824 million euros, and Ebitda of 13 billion yen, or 94 million euros, in FY23. The equity value of the business is 145 million euros.
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