Gabriel India Limited (GIL) has entered into an Asset Purchase Agreement (APA) with Marelli Motherson Auto Suspension Parts Pvt. Ltd. (MMAS) to acquire key assets, including fixed assets and inventory. This acquisition is set to strengthen GIL’s position in the automotive sector, particularly in suspension systems, by leveraging technology from Marelli Europe S.p.A. (Marelli Italy).
Key Details of the Acquisition:
- Target Entity: MMAS, a joint venture between Marelli Europe S.p.A. and Samvardhana Motherson International Limited (SAMIL).
- Business Focus: MMAS specializes in manufacturing shock absorbers, strut assemblies, gas lifters, dampers, and door balancers for both passenger and commercial vehicles.
- Revenue: MMAS generated INR 2,603 million in revenue during FY 2023-24.
Strategic Objectives:
- Industry: The assets pertain to the automobile components sector, focusing on suspension systems.
- Impact: GIL aims to enhance its market presence and build a strategic partnership with Marelli Italy, gaining access to valuable technical knowledge for manufacturing and distribution in India.
- Regulatory Approvals: No governmental approvals are required, though operational licenses will be applied as needed.
Transaction Structure:
- Consideration: GIL will pay approximately INR 600 million for the assets, which include inventory valued at INR 279 million as of March 2024, subject to adjustments at closing.
- Timeline: The acquisition is expected to conclude by Q1 FY2025-26, contingent on customary conditions being met.