Samvardhana Motherson To Buy 51% Stake In Saddles International For <span Class='webrupee'>₹</span>207 Cr

The companies plan to complete the acquisition within three-four months from the date of signing of the deal, according to an exchange filing.

The enterprise value will be computed with adjustments for debt, debt-like items, and working capital

With the acquisition of Saddles International, Samvardhana Motherson will take a step towards diversifying its current business by entering the upholstery market for applications such as passenger vehicle seat covers, gear knob covers, and wrapping of door panels, etc., supporting the company's vision of increasing content per car, the company said.

Saddles International Automotive and Aviation Interiors Pvt Ltd. is engaged in the business of manufacturing premium upholstery for applications such as passenger vehicles seat covers, covers for gear knobs and wrapping solutions for door trims. Saddle International has booked ₹2,500 crores in business over the next 4-5 years. The company reported revenues of ₹320 crore in FY22, with approximately 2,000 employees, the company operates seven facilities in India near OEMs, according to investor presentation.

Samvardhana Motherson, in a separate press release, also announced the merger of its four wholly owned subsidiaries with the company through the NCLT route 

Motherson Consultancies Service, Motherson Invenzen Xlab, Samvardhana Motherson Polymers, and MS Global India Automotive are among the four subsidiaries.

Samvardhana Motherson International board will consider its third-quarter results on 8 February.

Shares of Samvardhana Motherson ended 1.45% lower at ₹71.6 apiece on the NSE today.