Lumax to acquire 75% stake in IAC for Rs 587 crore

21 Feb 2023 , 12:06 PM

Lumax Auto Technologies announced on Monday that it has signed an agreement to acquire a majority stake in IAC International Automotive India from the International Automotive Components Group for Rs 587 crore.

According to the company’s release, 75% of the stake will be purchased through an SPV (acquisition vehicle) for Rs440 crore, which will be paid in cash and funded by debt and internal accruals, and IAC will retain a 25% stake.

It added that Lumax Auto Technologies Ltd (LATL) and IAC India’s strong free cash flow generation will ensure debt repayment within the next five years.

This strategic partnership will enable the company to expand its existing business in four-wheeler automotive plastics and provide a broader product range to customers.

Lumax Auto Technologies, a subsidiary of the Lumax-DK Jain Group, is a tier-1 supplier of automotive systems and components.

IAC India is a tier-1 supplier of interior systems and components to key Indian automotive OEMs.

IAC India has five manufacturing plants, two in Chakan (Pune) and one each in Manesar, Nashik, and Bengaluru, as well as an engineering centre in Pune.

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