Samvardhana Motherson to Acquire 51% Stake in Saddles: Cash Deal, EV Value?
By Malvika Gurung
Investing.com — The auto industry player Samvardhana Motherson International (NS:) announced to acquire a 51% stake in the Bengaluru-based company Saddles International Automotive and Aviation Interiors (SIAAIPL) on Friday.
In a board meeting held on Jan 27, 2023, the Board of Directors of Samvardhana Motherson approved to acquire a 51% stake in the premium upholstery manufacturer Saddles, marking the company’s foray into the upholstery space, thereby diversifying its current business and supporting the vision of increasing content per car.
The acquisition of 51% shares of Saddles will be from the latter’s existing shareholders with the right to appoint a majority of directors on the board of the target company (SIAAIPL).
The acquisition deal is subject to the satisfactory completion of all conditions precedent, with the transaction supposed to be in cash, and likely to be closed within a time period of 3-4 months from the date of signing, Samvardhana Motherson said in an exchange filing.
The cost of the acquisition of the aforementioned 51% stake of SIAAIPL by Samvardhana Motherson is fixed at an enterprise value of Rs 207 crore, with adjustments for debt.
The company said that the purchase price per equity share of the acquisition deal shall be determined at closing from the Enterprise Value after making necessary adjustments for debt.
SIAAIPL is engaged in the business of manufacturing premium upholstery for applications like passenger vehicles seat covers, covers for gear knobs and wrapping of door panels, and more.
The Bengaluru-based company was incorporated on March 11, 2019, and has seven manufacturing facilities across India. Its turnover for FY22 stood at Rs 320 crore.