New Delhi: Motherson Sumi Systems Ltd, the flagship company of the Samvardhana Motherson Group, on Monday said it has agreed to acquire Reydel Automotive Group for $201 million.
France-based Reydel, a privately held company controlled by buyout firm Cerberus Capital Management LP, manufactures interior parts of vehicles for customers.
Reydel has 20 manufacturing capacities in 16 countries and employs 5,650 people.
Reydel’s revenue for 2017 was $1.05 billion and operating profit was at $68 million, according to the press release issued by Motherson Sumi.
Reydel group counts French car makers Renault Groupe and Groupe PSA as customers.
With this acquisition, Motherson will expand its presence in countries such as Argentina, Croatia, Morocco and the Philippines.
According to Motherson Sumi, this will be the company’s 21st acquisition.
The company expects to complete the transaction in four to six months.
“With world-class development capabilities and strong customer relationships, we found great alignment with our existing offerings at Motherson. 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% to our business” said Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group.
The Reydel group’s interiors product portfolio includes instrument panels, door panels, console modules, decorative parts and cockpit modules.
“The Cerberus team has been a great partner for Reydel during our efforts to improve our profitability and carve out the business. We look forward to joining the Samvardhana Motherson Group, and this transaction would ensure that we will have excellent opportunities as part of one of the world’s leading suppliers to the automotive industry,” said Benoit Rolland, chief executive of Reydel Automotive Group.
As of 31 December 2017, Reydel Automotive Group had a gross debt of $25 million and cash reserves of $88 million on its books.