Auto parts maker Samvardhana Motherson International has agreed to acquire Germany's Dr. Schneider Group through an insolvency process for an enterprise value of 118.3 million euros ($131.6 million).
The acquisition adds to the half-dozen deals that Samvardhana Motherson has already stitched so far this year at a total cost of almost $900 million. The group’s acquisitions this year include the purchase of Germany’s SAS Autosystemtechnik in February for about $575 million and Yachiyo Industry from Honda Motor for about $158 million. It also acquired Rollon Hydraulics for about $12.5 million, Saddles International for almost $25 million and the assets of US-based Bolta, among other transactions.
Samvardhana said Dr. Schneider Group reported revenue of 472 million euros for the calendar year 2022. It filed for insolvency in September 2022 due to an unsuccessful operational and financial restructuring.
The German company produces advanced electronic interior polymer components and systems, including smart surfaces and lighting modules. A technology leader in air vents and decorative interior polymer components with illumination, it holds a significant market share in premium vehicles. The company has 4,500 employees spread across seven facilities in Germany, Spain, Poland, the US, and China.
Vivek Chaand Sehgal, Chairman, Motherson, said the group was confident of turning around the German firm. “We see a lot of synergies and untapped potential in this business, especially on the R&D side,” he said.
The Indian company said Dr. Schneider has over 200 patents and a strong focus on R&D and product innovation. Over 90% of its products have been developed in-house by a team of over 240 engineers, operating out of its fully equipped R&D centre in Germany.
Motherson said it has numerous synergies between its operations and Dr. Schneider, particularly concerning the role aesthetics and interior illumination play in the growing trend of premiumisation. Through this acquisition, Motherson will acquire electronic interior polymer components, enabling the company to extend these innovations and technologies to emerging markets and medium-segment customers, it said.
The deal is expected to be closed by the third quarter of 2023-24, subject to customary closing conditions and the receipt of required regulatory approvals.
