Motherson Sumi to acquire Reydel Automotive Group for $201 million
03 April 2018
Auto component major Motherson Sumi Systems Ltd (MSSL), the flagship company of the Samvardhana Motherson Group, has entered into an agreement to acquire privately-held French Reydel Automotive Group for $201 million.
Reydel, controlled by buyout firm Cerberus Capital Management LP, manufactures vehicle interiors for car makers.
This will be the 21st acquisition by Samvardhana Motherson Group and is intended to further bolster Motherson’s offerings in the automotive Interiors space.
"With world class development capabilities and strong customer relationships, we found great alignment with our existing offerings at Motherson,” said Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group.
“The synergistic combination of complimentary portfolios will create a stronger business. 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 per cent to our business.”
Reydel’s interiors product portfolio includes instrument panels, door panels, console modules, decorative parts and cockpit modules. Reydel’s global presence spans 20 plants and 16 countries, with an employee base of about 5,650 associates.
The acquisition would enable both companies to capitalise on new opportunities in their existing and new markets, as well as within each others’ customer portfolios. Reydel’s revenue for the year ended 31 December 2017, stood at $1,048 million with an EBITDA of $68 million.
The transaction will be discussed with employee representatives and, subject to obtaining customary regulatory and other approvals, could close within the next four to six months.
The consideration is expected to be financed using existing cash and banking limits at SMRPBV.
Evercore was the financial advisor to Cerberus and Reydel, and Linklaters LLP the legal advisor. Latham & Watkins was legal advisor to Motherson for the transaction and Norton Rose as legal advisor to Motherson for anti-trust related matters.