Auto components maker Samvardhana Motherson Automotive Systems Group BV will fully acquire the mirror business of Japan's Ichikoh Industries for an enterprise value of 5.2 billion yen (nearly Rs 300 crore), the company said in a stock exchange filing on. This will be the group's first acquisition in Japan.
The group, through its Vision Systems division, has entered into an agreement with Ichikoh Industries, a subsidiary of Valeo SE, in Japan to buy 100 per cent of the latter's mirror business, Samvardhana Motherson Automotive Systems Group BV (SMRPBV) it said. The transaction is being carried out at an enterprise value of Japanese yen 5.2 billion, subject to customary closing adjustments for debt/debt-like items and working capital, it added.
"Inorganic growth is an integral part of our Vision 2025. With this acquisition, Motherson will acquire a design and manufacturing footprint in Japan enabling closer coordination and stronger relationships with Japanese customers both for their local as well as global business," Motherson group Chairman Vivek Chaand Sehgal said.
"This will also help Visions Systems to expand its geographical reach in China and in its ability to grow business with Japanese OEMs," Sehgal added.
The deal includes Ichikoh's mirror business development and manufacturing of automotive mirrors and associated products in Japan and China, catering largely to Japanese original equipment manufacturers (OEMs), the group said, adding the target business reported revenues of 15.8 billion yen in 2021.
"With this transaction, Motherson will add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio," it added. On the significance of the acquisition, Motherson said Japan remains a key target market for it, as the third largest automotive production hub with strong technology leadership.
In July 2022, the group had established two facilities in Hamamatsu, it said, adding that this acquisition is the next major step in line with its strategy of enhancing growth with increased geographic and customer diversification.