Motherson to acquire Reydel Automotive Group for $201m 

The purchase price for the transaction is US$ 201 million (Rs 1270 crore). This would be the 21st  acquisition from the Samvardhana Motherson Group and will help bolster Motherson’s offerings in the automotive Interiors space.

Reydel’s interiors product portfolio includes instrument panels, door panels, console modules, decorative parts and cockpit modules. Reydel’s global presence spans 20 plants and 16 countries, and is supported by a workforce of approximately 5,650 associates. The acquisition would enable both companies to capitalise on new opportunities in their existing and new geographies, as well as within each others’ customer portfolios. Reydel’s revenue for the year ended December 31, 2017 was US$ 1,048 million (Rs 6,620 crore) and EBITDA was USD 68 million (provisional, and in accordance with  US GAAP).

“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 (pictured above). “The synergistic combination of complimentary portfolios will create a stronger business. We are very excited about this partnership. It brings us closer to meeting our 2020 targets and helps us achieve ‘3CX 15’, our strategy to not have any component, customer or country contributing more than 15 percent to our business.”

“We are proud to have contributed to Reydel’s significant accomplishments in recent years,” said Dev Kapadia, senior managing director of Cerberus and co-chair of the Cerberus Private Equity Investment Committee. “Following a successful carve-out from Visteon, we partnered with the business to develop a high-performing and focused management team that  was able to vastly improve financial performance. Since our acquisition in 2014, Reydel’s EBITDA has transformed from US$ 16 million in 2013 to US$ 68 million in 2017. Samvardhana Motherson Group is a world class company, and this transaction would fulfill one of our key objectives, which is to position the business with a leading entity that will take Reydel to an even higher level of performance and success.”