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Samvardhana Motherson acquires mirror business of Japan's Ichikoh Industries; stock tumbles ~4%

  • India Infoline News Service |
  • 26 Sep, 2022 |
  • 12:22 PM
Samvardhana Motherson International Limited informed that Samvardhana Motherson Automotive Systems Group BV (SMRPBV), through its Vision systems division, has agreed to purchase a 100% share in Ichikoh Industries (a subsidiary of Valeo SE) in Japan for JPY 5.2 billion (approx. Rs294 crore), subject to normal closing adjustments for debt/debt-like items and working capital.

Ichikoh's mirror business (development and production of car mirrors and associated components) in Japan and China is included in the transaction, which mostly serves Japanese OEMs. In 2021, the target company had revenues of JPY 15.8 billion. Motherson will gain three production sites in Japan and China, as well as 260 patents, to its IP portfolio as a result of this acquisition

This acquisition will mark a significant milestone in the group's connection with Japan, which began with its initial partnership in 1983. Japan, being the world's third biggest car manufacturing hub with significant technological leadership, is an important target market for Motherson, said the company in its media release.

“Motherson established two facilities in Hamamatsu, Japan, in July 2022, and this purchase is the next big step in accordance with the 3CX10 Group objective of greater regional and client diversity.”

The proposed transaction is expected to conclude in 6-8 months if all conditions precedent are met.

At around 12.26 PM, Samvardhana Motherson was trading at Rs113.60 down by Rs4.55 or 3.85% from its previous closing of Rs118.15 on the BSE. The scrip touched intraday high and low of Rs122.55 and Rs112.10 respectively.

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