Samvardhana Motherson strengthens its presence in Japan

26 Sep 2022 , 09:15 AM

Samvardhana Motherson Automotive Systems Group BV (SMRPBV), through its Vision systems division, has entered into an agreement with Ichikoh Industries (a subsidiary of Valeo SE) in Japan to buy 100% stake of its mirror business at an Enterprise Value of JPY 5.2 Bn (subject to customary closing adjustments for debt/debt-like items and working capital).&8239; The transaction includes Ichikohs mirror business (development and manufacturing of automotive mirrors and associated products) in Japan and China, catering largely to Japanese OEMs. The target business reported revenues of JPY 15.8 billion in 2021. With this transaction Motherson will add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio. This acquisition will be a major milestone in the groups relationship with Japan which began in 1983 with its first collaboration. As the 3rd largest automotive production hub with strong technology leadership, Japan remains a key target market for Motherson. In July 2022, Motherson established two facilities in Hamamatsu, Japan and this acquisition is the next major step in line with the Group strategy of 3CX10 with increased geographic and customer diversification. Completion of this transaction will provide Motherson with strong local R&D and manufacturing footprint, further strengthening groups relationship with Japanese OEMs. The improved customer connect with Japanese OEMs is expected to be a key catalyst for growth across the global footprint of these customers. This will be the third acquisition under the Vision systems business division during the current five-year plan following acquisitions in Turkey and China. With this transaction, Vision systems will achieve majority of its strategic geographical expansion objectives that were highlighted as a part of the of the Groups 2025 five year plan. The increased share of Japanese OEMs which were previously under-represented in the Vision system portfolio will create additional growth opportunities for the division in the future. The proposed deal is expected to be closed in 6-8 months subject to completion of all conditions precedent. Powered by Capital Market – Live News