Samvardhana Motherson International said that its board has approved the acquisition of remaining 50% stake of Fritzmeier Motherson Cabin Engineering from F Holdings GmbH, Austria.
Post completion of the transaction, Fritzmeier Motherson Cabin Engineering will become wholly owned subsidiary of the company.
Fritzmeier Motherson Cabin Engineering is engaged in development, manufacture and sale of operator cabins, cover assemblies and fabrications for the off highway applications. The company's turnover for 9 months ended 31 December 2022 (9M FY23) was Rs 144.4 crore.
Fritzmeier Motherson is a profitable joint venture in India between Samvardhana Motherson International (SAMIL) and F Holdings GmbH, Austria (JV Partner) from 2007 onwards with a 50-50 shareholding structure. Post completion of the transaction, SAMIL will own 100% of the company.
The off highway vehicles (agricultural, construction etc.) industry in India is poised for significant growth and post completion of the transaction, entire benefits of growth will fully accrue to SAMIL. On a 9M FY23 annualized basis the target business revenue has grown by approximately 70% YoY.
The said acquisition is being done for a cash consideration of Rs 110.7 crore.
Samvardhana Motherson International is engaged primarily in the manufacture and sale of components to automotive original equipment manufacturers.
On consolidated basis, the company's net profit from continuing operations soared 121.61% to Rs 500.73 crore in Q3 FY23 as against Rs 225.95 crore in Q3 FY22. Revenue from operations rose 25% year on year (YoY) to Rs 20,226 crore in the quarter ended 31 December 2022.
The scrip fell 1.61% to currently trade at Rs 67.35 on the BSE.
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