Shares of Motherson Sumi Systems surged as high as 6% in the morning trade on Tuesday after the auto parts maker inked a deal to acquire Reydel Automotive Group for an amount of $201 million from Cerberus.
Shares of Motherson Sumi Systems surged as high as 6% in the morning trade on Tuesday after the auto parts maker inked a deal to acquire Reydel Automotive Group for an amount of $201 million from Cerberus. “Motherson Sumi Systems Ltd (MSSL), flagship company of the Samvardhana Motherson Group (SMG), through its step down subsidiary Smvardhana Motherson Automotive Systems Group B V (SMRP BV), announced the proposed acquisition of Reydel Automotive Group (Reydel), a privately held portfolio company of Cerberus Capital Management LP (Cerberus),” Motherson Sumi Systems said in an exchange filing. “The purchase price for the transaction is $201 million, Motherson Sumi added.
Following the development, shares of Motherson Sumi were in focus since the beginning of the trade. The stock of Motherson Sumi Systems soared about 6.37% to a day’s high of Rs 344 on NSE while the stock jumped 6.02% to a day’s peak of Rs 343.8 on BSE. An unusual trading volume has been witnessed in the shares of Motherson Sumi Systems as compared to the volumes of last one month. As at 10:30 am, more than 58 lakh shares exchanged hands on both NSE and BSE with about 55.3 lakh shares on NSE alone.
Reydel Automotive Group is a manufacturer of interior components and modules for global automotive customers. The acquisition, which is Samvardhana Motherson Group’s 21st buy till date, intends to further bolster its offerings in the automotive interior space.
With world-class development capabilities and strong customer relationships, we found great alignment with our existing offerings at Motherson,” said Vivek Chaand Sehgal, Chairman, Samvardhana Motherson Group. “The synergistic combination of complimentary portfolios will create a stronger business. We are very excited about this partnership,” Vivek Chaand Sehgal said further. The acquisition brings the company closer to meet 2020 targets, Vivek Chaand Sehgal added.
“We look forward to joining the Samvardhana Motherson Group, and this transaction would ensure that we will have excellent opportunities as part of one of the world’s leading suppliers to the automotive industry,” Reydel CEO Benoit Rolland said. The transaction is expected to close within the next four to six months.