Motherson to acquire Dr Schneider Group; transaction valued at euro 118.3mn

Dr Schneider Group filed for insolvency in September due to failed operational and financial restructuring

Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has received approval from Samvardhana Motherson International Limited (SAMIL) to acquire assets and shares of Dr Schneider Group entities from the insolvency administrator, Dr Joachim Exner.

The overall enterprise value of this transaction is approximately euro 118.3 million, subject to certain actualisation, and is expected to be closed at the end of the third quarter of this financial year 2023-24.

Dr Schneider Group is a German manufacturing company within the automotive industry. It filed for insolvency in September 2022 due to “failed operational and financial restructuring,” according to the BSE filing.

The manufacturer of innovative, high-end interior components was also a technology leader in air-vents, decorative interior polymer components with illumination that is used  in premium vehicles.

Also Read: Motherson to acquire assets, shares of Dr Schneider Group entities

 

The company currently employs approximately 4,500 people across its seven centres spread out in five countries including, Germany, Spain, Poland, USA, and China.

In the calendar year 2022, the company reportedly had a turnover of euro 472 million.

Overall equity value is expected to be in the range of euro 70-80 million along with financial debt of not more than euro 20 million.

90 per cent of Dr Schneider Group’s products were developed in-house, for which the company currently holds all patents. In the acquisition, Motherson will gain access to these innovative technologies and be able to leverage the company’s existing global footprint.

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Upon this announcement, Vivek Chaand Sehgal, the chairman of Motherson said, “We have been trusted by our customer to take over this business. With their continued support we believe we will be able to turn around this business like we have done every time in the past. We see a lot of synergies and untapped potential in this business, especially on the R&D side. We are looking forward to welcoming 4,500 people on our journey towards our Vision 2025 and beyond.