Motherson Sumi Systems Limited has, in principle, approved the proposal to (jointly with Samvardhana Motherson Finance Limited) acquire 80 percent of the shareholding of Peguform Group, Germany, from Cross Industries AG. The acquisition will be made through a SPV in which MSSL will hold 51 percent and Samvardhana Motherson Finance the rest. This SPV would acquire 80 percent shares of Peguform Group while 20 percent equity will remain with Cross Industries AG.

Established in 1959 as Badische Plastikwerke, Peguform is a leading full service supplier of differentiated high quality interior and exterior products for automotive and related industries. Cross’s 20 percent shareholding will include 50 percent holding in Wethje Carbon Composite, a part of Cross Industries. These acquisitions are subject to the regulatory and other approvals.

Peguform has a strong European presence. It is the second-largest supplier of door panels and the third largest supplier of Instrument Panels in Germany. Peguform is a market leader in bumpers in Germany and holds a market leader position in cockpit assemblies in Spain. Major clients include the Volkswagen Group, BMW, Porsche, PSA Peugeot Citroën, Renault-Nissan, Daimler and GM.

Based at Bötzingen in Germany, Peguform has 22 facilities including five module centres and 17 production sites globally. Peguform-Beteiligungs-GmbH, based in Austria is the parent company of Peguform Group and is owned by Cross Industries AG, a holding company with strategic focus on the automotive sector.

The Samvardhana Motherson Group (SMG) has a division in plastic moulding, assemblies and module integration for more than a decade. The acquisition is in line with the existing business in India and is expected to add value by integrating and consolidating the business in India and globally.