Samvardhana Motherson International Ltd, a prominent player in the auto components industry, announced on Thursday that its subsidiary, Samvardhana Motherson Automotive Systems Group BV (SMRPBV), will be acquiring Cirma Entreprise SAS, a French entity, for a total sum of 7.2 million euros (approximately ₹65 crore). This strategic acquisition will further strengthen Samvardhana Motherson’s presence in the aerospace, shipbuilding, and allied industries.
The binding agreement for the acquisition was signed between SMRPBV and Vinci Energies France, the current owner of Cirma Entreprise. As part of the deal, SMRPBV will acquire a 100% stake in Cirma Entreprise, allowing them to gain complete control over the operations and assets of the French entity. The enterprise value of the acquisition has been estimated at 7.2 million euros.
Cirma Entreprise is a renowned player in the aerospace, shipbuilding, and allied industries, offering a wide range of products and services. With this acquisition, Samvardhana Motherson aims to leverage Cirma Entreprise’s expertise and capabilities to enhance its own product portfolio and expand its global footprint.
The move aligns with Samvardhana Motherson’s long-term growth strategy of diversifying its business and exploring new avenues for expansion. By venturing into the aerospace and shipbuilding sectors, the company aims to capitalize on the rising demand for advanced and high-quality components in these industries.
Commenting on the acquisition, a spokesperson from Samvardhana Motherson International stated, “We are delighted to announce the acquisition of Cirma Entreprise SAS by SMRPBV. This strategic move will further strengthen our position in the aerospace, shipbuilding, and allied industries, and enable us to offer a broader range of innovative solutions to our customers.”
The acquisition of Cirma Entreprise is expected to provide significant synergies and business opportunities for Samvardhana Motherson. By combining their respective strengths and resources, the company aims to enhance its competitiveness in the global market and cater to the evolving needs of its customers.
Samvardhana Motherson has a strong track record of successful acquisitions and integrations, and this latest acquisition is a testament to its commitment to growth and expansion. The company has consistently pursued strategic partnerships and investments to enhance its capabilities and strengthen its market position.
As the automotive industry undergoes rapid transformations, Samvardhana Motherson continues to adapt and evolve to meet the changing demands of its customers. By expanding its presence in diverse sectors, the company is well-positioned to capitalize on emerging opportunities and maintain its leadership in the auto components market.
The acquisition of Cirma Entreprise is subject to regulatory approvals and customary closing conditions. Once the transaction is completed, Samvardhana Motherson Automotive Systems Group BV will assume control of Cirma Entreprise’s operations and commence the integration process. The company is confident that the acquisition will be a significant milestone in its journey towards becoming a global leader in the auto components and related industries.
