Motherson Sumi Systems Ltd Purchases Scherer & Trier Assets

Drive For Acquisition: Motherson Sumi Systems Ltd Purchases Scherer & Trier Assets

Auto parts company Motherson Sumi Systems Ltd has announced that it will be purchasing the assets of German firm Scherer & Trier Group for 36 million euros or around USD 44.8 million via a subsidiary, the firm has said in a statement issue on Monday, 15th December 2014.

Smooth Ride

Motherson Sumi’s subsidiary Samvardhana Motherson Automotive Systems Group BV of Netherlands has signed an agreement for the purchase of the Scherer & Trier assets. This includes 2 manufacturing facilities located in Germany and Puebla in Mexico. Schemer & Trier is a Germany based firm which manufacturers parts for companies such as Audi, BMW, Daimler, General Motors, Ford and Volkswagen with a massive turnover of around 240 million euros, as per the statement.

Consolidation of Business

Motherson Sumi Systems offers versatile polymer products and it will gain considerably from this deal. The company is paying for a whole range of assets including land, building and inventories along with shareholding in Mexican entities.

"This acquisition includes two manufacturing facilities situated at Michelau (Germany) and Puebla (Mexico)," Motherson Sumi also shared in a statement today. The acquisition would lead to consolidation of Motherson Sumi System's "polymer business in Europe and North America.”

The subsidiary in question through which the deal has been made is the Samvardhana Motherson Automotive Systems Group BV Netherlands which has entered into a pact for the purchase of "assets of Scherer & Trier group, Germany from its administrator through its step down subsidiaries.”

SMRP BV is a subsidiary of Motherson Sumi Systems Ltd and it is the flagship company of Samvardhana Motherson Group. It is also a joint venture between Motherson Sumi Systems and Samvardhana Motherson International Limited. The latter is a principal holding firm of Samvardhana Motherson Group.

Enhancing Product Portfolio

Samvardhana Motherson Group Chairman V. C. Sehgal was quoted as saying this deal would further enhance its product portfolio. "S&T is a company with strong technological know-how and a well-established product line... The significant synergies between Scherer & Trier's products and SMRP BV, will now allow Motherson to offer a more diversified range of polymer products to its customers," he noted.

The German company is known for developing and manufacturing extrusion profiles, moulded parts created out of thermoplastics and hybrid components made of metal and plastic and it caters to original equipment manufacturers such as Ford, GM, VW and Daimler. The deal is to be completed by January 2015. Mothers Sumi offers a complete range of products such as rear view mirrors, moulded plastic parts, interior and exterior parts as well as wireless harnesses.