Samvardhana Motherson Automotive Systems Group BV (SMRPBV) on Monday announced the acquisition of a majority stake in two Turkey-based makers of moulded parts, sub-assemblies for mirrors and lighting systems.
SMRPBV will acquire a 75 per cent stake in Plast Met Plastik Metal San ImalatveTic AS (PM-Bursa) and Plast Met Kalip San.veTic AS (PM-Istanbul) together known as Plast Met Group (Turkey) through its subsidiary Samvardhana Motherson Reflectec (SMR).
The companies reported combined revenues of 33 million euros in 2019 and 28 million euros in 2020.
The balance of stake will be held by Plast Met's founder Erol Senol who will continue with the company. Plast Met also has capabilities to manufacture high-end complex injection moulding tools, which cater to customers in Turkey as well as other global markets, said Motherson Sumi in a statement.
The acquisition will mark SMR and Motherson group's entry into Turkey which has a vehicle market of 1.4 million units annually. The proposed deal is expected to be closed within three months subject to receipt of necessary approvals and is expected to be EPS accretive.
Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4 million units and a long-term growth potential. Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve group's customers in the European region, said Motherson Sumi.
Chairman of Motherson Group Vivek Chaand Sehgal said the acquisition marks another step towards the growth and diversification of vision systems vertical and the group overall.
"This is the 25th acquisition by Motherson Group. Turkey will be the 42nd country in Motherson's global operations, which is in line with our philosophy of 3CX10," he said.
3CX10 means no component, no country, no customer will be more than 10 per cent of the company's turnover.