On Monday, Samvardhana Motherson International (SMIL), the auto parts maker, said that it has acquired Germany’s Dr. Schneider Group for $131.6 million.
Dr. Schneider Group is a subsidiary of Dr. Schneider Holding. It manufactures interior components for vehicles such as panels and lighting.
The acquisition has been done through an insolvency process.
Samvardhana Motherson stated, “The German company had filed for insolvency in September 2022 due to “a failed operational and financial restructuring.”
Chairman Vivek Chaand Sehgal in a statement said, “We believe we will be able to turn around this business… We see a lot of synergies and untapped potential, especially on the research and development side.”
The company through its wholly-owned arm Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has entered into an agreement to acquire assets and shares of the Dr Schneider Group. The estimated enterprise value for assets purchased in Germany subject to certain actualisations is 69.1 million euros and the same for shares of overseas subsidiaries is 49.2 million, the company said.
According to the company, the acquisition is expected to be closed by the third quarter of fiscal 2024.
Motherson said that Dr Schneider Group has a strong focus on R&D and product innovation, resulting in over 200 patents. It was further added that more than 90% of its products have been developed in-house by a dedicated team of over 240 engineers, operating out of its fully equipped R&D centre in Germany.
The acquisition adds to SMIL’s repertoire of big-ticket purchases to increase its presence in the auto parts manufacturing sector.
The company said, “With this acquisition, Motherson will also gain access to innovative electronic interior polymer components and can offer these innovations and technologies to other emerging countries and to medium segment customers by leveraging its existing global footprints and customer relationships.”
Earlier in July, SMIL said it will buy from Honda Motor Co a majority stake in the four-wheeler business of Japan-based auto parts maker Yachiyo Industry.