SJS completes acquisition of 90.1% stake in Walter Pack India

S.J.S. Enterprises Limited have completed the acquisition of 90.1% stake in Walter Pack Automotive Products India Private Limited (WPI) within the given timeline, for a total cash consideration of INR 2,393 Mn.

This transformative acquisition of WPI lays the groundwork for a strategic collaboration with Walter Pack Spain and one of the key shareholders, Antolin, a global provider of automotive interior technology solutions.

Transaction details:
SJS successfully acquired 3,15,442 equity shares of WPI, constituting 90.1% of the Equity Share Capital of WPI. Consequently, WPI has become a subsidiary of the Company.
– Acquired the entire 85.0% stake from Walter Pack Spain
– Acquired 5.1% stake from Indian promoter and founder, Mr. Roy Mathew who will continue to own 9.9% stake. He will lead the WPI business and will be reporting to Mr. K. A. Joseph and Mr. Sanjay Thapar.

SJS paid a total cash consideration of INR 2,393 Mn for 90.1% stake at an LTM EV / EBITDA of ~7x. Total upfront consideration paid at closing was INR 2,298 Mn and balance would be paid over the next 18 months.

Post the acquisition, the consolidated Debt / EBITDA of SJS stands at around 0.8x.

Strategic Acquisition
SJS, with the acquisition of Exotech Plastics, has demonstrated in the past its ability to successfully acquire and integrate business. Exotech’s revenue doubled and witnessed a substantial margin expansion within 2 years of acquisition. Today, with the completion of the acquisition of WPI, SJS has acquired a much larger and a higher margin business with strong future growth potential. WPI is one of the leading companies in India that has capabilities in advanced IMD, IMF, IML and IME technologies, providing a strong technological advantage. SJS, as part of this transaction has signed a 3-year service & technology support agreement with Walter Pack Spain regarding the ongoing exchange of know-how. WPI’s technological capabilities perfectly complement SJS’ design to delivery expertise, providing customers with a complete one stop shop solution. The agreement between the two companies, makes SJS the leading supplier to the automotive and consumer durables segments in Asia, thanks to WPI’s state-of-the-art facilities in Pune, Maharashtra and Manesar, Haryana, equipped to cater to future growth.