The all-cash deal is subject to regulatory approvals and is expected to be closed in the coming three months, the company said in a statement.
This will mark the Motherson Group’s formal entry into the Turkish market, the 42nd country in its global operations. The country has a domestic automotive market of approximately 1.4 million units per annum and is a strategic sourcing hub for European manufacturers, Motherson Sumi said in a presentation.
The deal includes two companies of the Plast Met group – Plast Met Kalip, Istanbul and Plast Met Plastik, Bursa – engaged in manufacturing of injection moulded parts, sub-assemblies for mirrors, trim modules and lighting systems. The companies had a combined revenue of €33 million (Rs 292 crore) in 2019.
“This 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 and we will continue to work towards serving our customers with more products and service offerings globally” Vivek Chaand Sehgal, Chairman, Motherson Group said in a statement.
Erol Senol, the founder of Plast Met will retain 25% stake in the companies.
“I am delighted with the strategic partnership between Plast Met and Motherson,” he said in a statement. “Together with the global know-how of Motherson Group and local expertise of Plast Met group, I am confident that the alliance will enhance value to our customers.”
The stock of Motherson Sumi Systems Limited closed 3.39% lower at Rs 156.95 per share on the BSE on Monday.