Motherson Sumi Systems Ltd. bought privately held Reydel Automotive Group, maker of interior components and modules for automobiles, for $201 million (about Rs 1,300 crore) as the company continues to diversify its offerings to cut dependence on any single product or market.
This is the 21st acquisition from the Samvardhana Motherson Group and will further bolster offerings in automotive interiors, a company statement said. Motherson Sumi is the group's joint venture with Japan's Sumitomo Wiring Systems. Reydel is a portfolio company of American private equity firm Cerberus Capital Management led by billionaire Steve Feinberg.
The deal is expected to be financed using existing cash and banking limits at Samvardhana Motherson Automotive Systems Group B.V., a step-down subsidiary of the group. It expects to close the transaction within the four to six months.
Reydel's acquisition brings us closer to meeting our 2020 targets and helps us achieve ‘3CX 15', our strategy to not have any component, customer or country contributing more than 15 percent to our business.Vivek Chaand Sehgal, Chairman, Samvardhana Motherson Group
Reydel reported a revenue of over $1 billion for the year ended December. Earnings before interest, tax, depreciation and amortisation stood at $68 million. The company's interiors product portfolio includes instrument panels, door panels, console modules, decorative parts and cockpit modules.
The transaction will be discussed with employee representatives and is subject to regulatory and other approvals.
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