Motherson To Acquire Majority Stake In Turkish Group
With the entry into Turkey, Motherson’s global operations will now span across 42 countries.
Auto components major Motherson Group on Monday said it will acquire a majority stake in Turkey's Plast Met Group, a key supplier of plastic moulded parts, related sub-assemblies and injection moulding tools, for an undisclosed amount.
The acquisition is being carried out by Samvardhana Motherson Automotive Systems Group BV, through its subsidiary Samvardhana Motherson Reflectec, the group said in a statement. As part of the deal, SMR will acquire 75% stake and will enter into a partnership with the founder of Plast Met.
The acquisition includes two companies of Plast Met Group -- Plast Met Kalip, Istanbul and Plast Met Plastik, Bursa -- engaged in manufacturing of injection moulded parts, sub-assemblies for mirrors, trim modules and lighting systems.
"This acquisition will mark SMR and Motherson group's entry into Turkey. Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4 million units and a long-term growth potential," it added.
Commenting on the acquisition, Motherson Group Chairman Vivek Chaand Sehgal said, "This acquisition marks another step towards the growth and diversification of Vision Systems vertical and the group overall."
He further said, "This is the 25th acquisition by Motherson Group and we will continue to work towards serving our customers with more products and service offerings globally."
Turkey will be the 42nd country in Motherson's global operations. The transaction will also enhance the group's tooling capabilities and complement its existing manufacturing footprint, the statement said.
"Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve group's customers in European region. The proposed deal is expected to be closed within three months subject to receipt of necessary approvals," it added.
Plast Met group founder Erol Senol said, "Both companies are aligned in their business objectives and philosophy. Together with the global know-how of Motherson Group and local expertise of Plast Met group, I am confident that the alliance will enhance value to our customers."
The Turkish group also has capabilities of manufacturing high-end complex injection moulding tools which cater to customers in Turkey as well as other global markets. The two target companies reported combined revenues of 33 million euros in 2019 and an estimated 28 million euros in 2020.