Motherson to acquire SAS Autosystemtechnik from Faurecia

Samvardhana Motherson Automotive Systems Group (SMRPBV) a subsidiary of Samvardhana Motherson International (SAMIL) has inked an agreement with Faurecia to acquire Germany-based SAS Autosystemtechnik (SAS).

The company provides assembly and logistics services for the automotive industry. It has strong customer relationships with leading European and American OEMs, some of which span almost 3 decades. The company’s gross revenues were around 4.4 billion euro (Rs 38,667 crore) on principal basis with net revenues (IFRS) of 896 million euro (Rs 7,875 crore) for the year ended December 31st, 2022, with almost half of it contributed by EV programs.

SAS has orders in hand already secured are of over around 3 billion euro (Rs 26,364 crore) in cumulative net revenues over the next 3 years. It has more than 5,000 employees in over 24 manufacturing locations in Europe, Asia, and America.

Motherson says the transaction will be another step further enhancing its integration in the global automotive supply chain and increase its customer proximity. With its strong capabilities in assembly, automation and logistics, SAS is well positioned to benefit from the secular trend of outsourcing of module assembly by OEMs to trusted suppliers.

The enterprise value of the business is 540 million euro (Rs 4,745 crore) and the transaction will be funded by a mix of debt and internal accruals The transaction remains subject to information or consultation with employee representatives.

Vivek Chaand Sehgal, Chairman, Motherson said, “We have always added new products and technologies to closely serve our customers in a more cohesive way. The acquisition of SAS is an important step in this direction. By adding complementing capabilities which SAS brings, we will be able to further enhance our tier 0.5 position with our customers. With this acquisition, we will be even more diversified in our customer base and products. This acquisition will transform Motherson Group to be a leading assembler of cockpits modules globally, with special focus on EV models. We look forward to welcoming over 5,000 new members into the Motherson family.”