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Motilal Oswal Report
Motherson Sumi Systems Ltd. has acquired 55% stake in Bengaluru-based CIM Tools Pvt. Ltd. (one of the top five machining companies in India).
The balance stake will be retained by its three founders, who will continue to drive the business.
This marks Motherson Sumi Systems' entry into the aerospace segment, which is part of the non-automotive sectors identified for diversification in its five-year plan.
CIM Tools has more than 60 accreditations and qualifications in place, which act as high barrier to entry.
The management said the deal valuation was at 7.5-8 times enterprise value/Ebitda, implying an enterprise value of Rs 3.5-4 billion.
The net debt stands at Rs 1.5-1.75 billion.
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