Samvardhana Motherson Automotive Systems Group BV (SMRPBV), today announced the acquisition of a majority stake in Plast Met Plastik Metal San. İmalatveTic.A.Ş.(PM-Bursa) and Plast Met Kalıp San.veTic.A.Ş.(PM-Istanbul) together known as Plast Met group (Turkey) through its subsidiary Samvardhana Motherson Reflectec (SMR).
SMR will acquire 75% stake and thus will enter into a partnership with the founder of Plast Met. The deal includes two companies of Plast Met group (“The Companies”), engaged in manufacturing of injection moulded parts, sub-assemblies for mirrors, trim modules and lighting systems. Plast Met also has capabilities of manufacturing high-end complex injection moulding tools which cater to customers in Turkey as well as other global markets. The Companies reported combined revenues of Euro 33mn in 2019 and Euro 28mn (estimated) in 2020.
Mr. Erol Senol, the founder of Plast Met will retain 25% stake in The Companies and will continue to drive further business growth as a partner with SMR.
This acquisition will mark SMR and Motherson group’s entry into Turkey. Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4mn units and a long-term growth potential. Entry into Turkey is consistent with the geographic expansion opportunities highlighted in the recent Vision 2025 presentation (refer to the Motherson website for details).
The transaction will also enhance Motherson group’s tooling capabilities and complement its existing manufacturing footprint. Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve group’s customers in European region. The proposed deal is expected to be closed within 3 months subject to receipt of necessary approvals and is expected to be EPS accretive.
Commenting on the deal, Mr Vivek Chaand Sehgal, Chairman, Motherson Group said, “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. Turkey will be the 42nd country in Motherson’s global operations, which is in line with our philosophy of 3CX10.”
Mr. Erol Senol, Founder, Plast Met group said “I am delighted with the strategic partnership between Plast Met and Motherson. Both companies are aligned in their business objectives and philosophy. 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”