Samvardhana Motherson’s Subsidiary to Acquire Autoelectric for EUR 207M

Samvardhana Motherson International Ltd has announced that its indirect wholly owned subsidiary, Motherson Global Investments B.V., will acquire the business of Nexans autoelectric GmbH and Elektrokontact GmbH. This acquisition includes assets, certain real estate, and shares in foreign subsidiaries, collectively referred to as “Autoelectric.” The transaction is structured under a master framework agreement, which involves a series of shares and asset purchase agreements to transfer interests in multiple subsidiaries and assets.

The financial terms of the transaction indicate an enterprise value of EUR 207 million on a cash and debt-free basis. The actual payout will be determined post customary adjustments for cash, cash-like items, debt, debt-like items, and normalized working capital. The acquisition will be executed through cash consideration. The reported revenues of Autoelectric for the calendar year 2024 were EUR 749 million.

Operationally, the acquisition encompasses the transfer of identified assets such as real estate, fixed assets, intangible assets, and inventory in Germany. It also includes 100% shares of subsidiaries and branch offices in countries like the United States, Mexico, China, Tunisia, Ukraine, Romania, Slovakia, Czech Republic, Austria, and Switzerland. Autoelectric is a global manufacturer of automotive wiring harnesses for light and commercial vehicles, specializing in low and high voltage applications.

The timeline for the acquisition completion is set for Q1 FY27, subject to satisfactory completion of all conditions precedent, including regulatory approvals and consultations with the works council. The necessary regulatory approvals include merger control clearance from the European Commission and national authorities in Brazil and the United States, as well as clearance from the Committee on Foreign Investment in the United States.

The parties involved in the transaction include Samvardhana Motherson International Ltd, its subsidiary Motherson Global Investments B.V., and the selling entities Nexans autoelectric GmbH and Elektrokontact GmbH. Samvardhana Motherson Automotive Systems Group B.V. will act as the guarantor for the purchaser’s obligations under the master framework agreement.

This acquisition is significant for Motherson as it aims to enhance its presence with passenger vehicle OEMs globally. The transaction is synergistic and complementary to Motherson’s existing Wiring Harness division. Autoelectric’s experienced management team and access to a high R&D and design network spread across key customer locations are expected to provide strategic advantages.

Samvardhana Motherson International Ltd is a global design, engineering, manufacturing, and assembly specialist. Established in 1986, the company provides innovative and value-added products, services, and solutions to a diverse global customer base, including leading automobile manufacturers. With operations in over 425 facilities across 44 countries, the company supports customers in automotive and non-automotive sectors, focusing on technology, industrial solutions, health & medical, aerospace, and logistics.