Motherson Sumi climbs 4% after inking pact to acquire Reydel Automotive

Shares of Motherson Sumi (MSSL) climbed over 4 per cent in early trade on Tuesday after the company on Monday, post market hours, informed bourses that it has inked a pact to acquire interior components and modules manufacturer Reydel Automotive Group (Reydel) for $201 million (over Rs 1,307 crore).

The scrip opened at Rs 337 and touched a high and low of Rs 343.80 and Rs 330.50, respectively, eventually closing at Rs 332.60, up 2.58 per cent on BSE.

Samvardhana Motherson Automotive Systems Group B V (SMRP BV), a step-down subsidiary of MSSL has proposed to acquire Reydel, a privately held portfolio company of Cerberus Capital Management, L.P. (Cerberus), company said in a statement.


This would be the 21st acquisition for the Samvardhana Motherson Group and is aimed to further bolster Motherson’s offerings in the automotive interiors space.

“The acquisition is intended to enable both companies to capitalise on new opportunities in their existing and new geographies, as well as within each others’ customer portfolios,” Motherson Sumi said in a BSE release.

Reydel manufactures interior components and modules for global automotive customers.

"The synergistic combination of complimentary portfolios will create a stronger business. We are very excited about this partnership," Motherson Group Chairman Vivek Chaand Sehgal said in a statement.

The acquisition brings the company closer to meet 2020 targets, he added.