SamvardhanaMotherson Automotive Systems Group (SMRPBV) has today announced acquiring a majority stake in Turkey’s Plast Met Group.
The Plast Met Group comprises of Plast Met Plastik Metal San. İmalatveTic.A.Ş.(PM-Bursa) and Plast Met KalıpSan.veTic.A.Ş .(PM-Istanbul). The acquisition will be completed through Samvardhana Motherson’s subsidiary, Samvardhana Motherson Reflectec (SMR).
SMR will acquire 75 percent stake and will thereby enter into a partnership with the founder of the Plast Met Group – Erol Senol – who will retail 25 percent stake. The proposed deal is expected to be closed within three months subject to receipt of necessary approvals and is expected to be EPS accretive.
The move will also give India’s Motherson Groupan entry into Turkey, which has been recognised as a strategic growth market by the Tier I auto components major. The company is looking at a long-term growth potential arising from Turkey’s annual passenger vehicle volumes that are pegged at 1.4 million units.
The deal includes two companies of the Plast Met Group which are 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 two companies have reported combined revenues of Euro 33 million (Rs 273 crore) in 2019 and an estimated Euro 28 million (Rs 231 crore)in 2020.
The Motherson Group says that entry into Turkey is consistent with the geographic expansion opportunities highlighted in the recent Vision 2025 presentation to its shareholders.
According to Vivek Chaand Sehgal, chairman, Motherson Group, “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.”
The transaction will also enhance MothersonGroup’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 the Group’s customers in the European region.
According to Erol Senol, founder, Plast Met Group,“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”