Motherson Sumi acquires Hungarian auto parts maker Abraham es Tarsa

Motherson Sumi Systems Ltd (MSSL) has acquired the automotive business unit of Abraham es Tarsa Kft (Abraham and Co Ltd), the Hungarian auto component manufacturer, for Euro 10.4 million (about Rs 75 crore).

“MSSL Manufacturing Hungary Kft, a subsidiary of MSSL GmbH (which is a subsidiary of MSSL) is acquiring the automotive business unit of Abraham es Tarsa Kft located in Turkeve, Hungary, on a going concern basis and would also give on lease part of acquired assets to SMR Hungary,” said MSSL in a press statement.

With this transaction, which is expected to be completed in October 2016, MSSL through its wholly-owned subsidiary, MSSL Manufacturing Hungary Kft, would acquire the land, building and machinery of Abraham es Tarsa Kft.

Abraham es Tarsa is an expert for plastic processing and high quality products for car makers across Europe. SMR Hungary a subsidiary of SMRP BV (98.5 percent holding), which is ultimately held by MSSL, has for many years been the primary customer of Abraham es Tarsa Kft.

The integration of this business would allow to generate a number of operational synergies with SMR. “This acquisition will increase the in-house capability of SMR Hungary, and therefore will support SMR’s position as technology and market leader for automotive mirrors in Hungary and Europe. The acquired unit will be further expanded to achieve group synergies through supplies to SMR and to the new facilities being set up by SMP in Europe to meet the demand for new orders from customers,” said Motherson Sumi Systems Ltd.