Samvardhana Motherson International Limited (SAML) announced that the company has inked an agreement with Rollon Hydraulics Private Limited for acquisition of 100% stake.
As of March 31, 2023, the acquisition is valued at Rs 76.5 crore in terms of enterprise value. The acquisition cost Rs 103 crore in terms of equity value.
In a regulatory filing, SAML stated that the transaction is expected to close in the second quarter of the fiscal year 2023-24, subject to the satisfaction of closing conditions.
Rollon Hydraulics, headquartered in Bengaluru, is capable of producing, assembling, and supplying high-precision turned parts, spools, and other machined components for critical engineering applications. It runs two manufacturing plants.
SAML intends to use this acquisition to strengthen its existing Precision Metals & Modules division and expand into the construction, agriculture, and material handling markets by offering complex ‘Spools & turned parts’ for hydraulic valve applications.
The agreement is expected to widen the auto component maker’s existing machining footprint in India and Mexico, according to the statement.
At around 12.39 PM, Samvardhana Motherson was trading 0.77% lower at Rs 90.65, against the previous close of Rs 91.35 on NSE.
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