Samvardhana Motherson-led arm picks up stake worth 7.2 million euros in Cirma

16 Jun 2023 , 11:49 AM

Samvardhana Motherson International Ltd. announced that its subsidiary Samvardhana Motherson Automotive Systems Group BV will acquire French entity Cirma Enterprise SAS. The acquisition will be at an Enterprise Value of 7.2 million euros (nearly Rs 65 crore).

The company stated in its filing with the bourses, “Samvardhana Motherson Automotive Systems Group BV (SMRPBV) inked an agreement to acquire a 100% stake in Cirma Entreprise from Vinci Energies France.”

Cirma Enterprise is involved in aerospace, shipbuilding, and related industries. The acquisition cost is estimated to be 7.2 million euros (Rs 65 crore approx.), according to the company.

The company stated that through the acquisition, Motherson would attain Tier 1 status as an Aerospace Original Equipment Manufacturer (OEM). Being in close proximity to OEMs would provide additional opportunities for future growth.

The acquisition aligns with Motherson’s growth strategy and complements its existing wiring harness capabilities. It is also expected to provide the company with access to the shipbuilding and related industries, as stated in the filing.

At around 11.37 AM, Samvardhana Motherson was trading 1.40% higher at Rs 83.30, against the previous close of Rs 82.15 on NSE.

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