• Samvardhana Motherson says the transaction is accrual of EPS and is likely to be completed within the next 6-8 months.

Samvardhana Motherson, one of the world’s largest automotive suppliers to original equipment manufacturers (OEMs), has announced its first acquisition in Japan through its Vision Systems Business division.

The company has reached an agreement with Ichikoh Industries to acquire its mirror business for an enterprise value of JPY 5.2 billion (Rs 293 million at current exchange rates).

The transaction will include Ichikoh’s mirror business, which develops and manufactures automotive mirrors and associated products in Japan and China, largely serving Japanese OEMs.

Motherson will end up adding three manufacturing facilities in both countries and 260 patents to its intellectual property portfolio after this transaction.

“This acquisition is the next big step in line with the 3CX10 Group Strategy with further customer and geographic diversification,” the company wrote in its exchange filing. Motherson’s 3CX10 strategy involves ensuring that no component, no country, or no customer contributes more than 10 percent of the overall top line.

Subject to customary conditions, the transaction is likely to be completed within the next 6-8 months.

Ichikoh’s mirror business reported revenue of 15.8 billion yen in 2021, down from 22 billion yen in 2019. The company is a key supplier of automotive mirrors to Japanese OEMs in Japan, China and Thailand.

Motherson’s Vision Systems division serves customers from 37 facilities in 18 countries. This division supplies exterior mirrors, interior mirrors, and camera-based sensing systems to the world’s leading automotive OEMs.

The transaction is accrual of EPS, according to the company.

“With this acquisition, Motherson will acquire a design and manufacturing footprint in Japan, enabling closer coordination and a stronger relationship with Japanese customers, both for their local and global business,” said Motherson President Vivek Chaand. Sehgal.

Shares of Samvardhana Motherson International are trading 1.6 percent lower at Rs 116.20, as of 9:40 a.m.

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