Indian automotive Tier-1 conglomerate Motherson Group has completed the acquisition of Alabama, US-based automotive plastics supplier Bolta US. The Noida-headquartered company informed the Stock Exchange about the transaction in a notification dated April 17.
The Motherson Group executed the transaction after Bolta US getting authorisation from the United States Bankruptcy Court, approving the sale of all its assets. The Indian automotive giant has leveraged its subsidiary SMP Automotive Systems Alabama or SMP Alabama to complete the acquisition, free and clear of lien, the statement said.
The recent event comes as an update to Motherson's earlier notification of March 27, 2023 when the company had intimated the Stock Exchange about its submission of a bid to purchase the assets of Bolta US, which had filed for bankruptcy and was actively looking for a buyout.
The Motherson Group through SMP Alabama has acquired US$ 35.7 million (Rs 293.5 crore) worth of Bolta’s fixed assets that also include US$ 31.8 million (Rs 261.4 crore) of tangible assets and US$ 3.9 million (Rs 32.1 crore) of intangible assets of the company. The deal also includes asset transfer of US$ 4.7 million (Rs 38.6 crore) of Bolta's inventory for US$ 16.002 million (Rs 131.5 crore).
The Alabama-based Bolta US is a manufacturer and supplier of plastic injection-molded components to Original Equipment Manufacturers (OEMs) including Volkswagen, Audi, Mercedes-Benz, and Volvo. Motherson's acquisition of Bolta through its subsidiary SMP Alabama or Samvardhana Motherson Peguform is a synergistic step, in the sense that SMP, which is a supplier of exterior and interior modules for the automotive industry, will integrate Bolta into its larger scheme of things and aim for business expansion in the US market by diversifying into chrome-plated parts with Bolta acquisition.