Samvardhana Motherson Automotive Systems Group BV (“SMRPBV”), a step-down subsidiary of Samvardhana Motherson International Limited (formerly Motherson Sumi Systems Limited) (“the Company”), through one of its European subsidiaries, has signed a binding undertaking to acquire a 100% stake in CIRMA ENTREPRISE (Cirma), a French société par actions simplifiée, from Vinci Energies France, French société par actions simplifiée. The above transaction will be presented to the employees representatives body of CIRMA ENTREPRISE and, once agreed by Vinci Energies France, will be subject to customary closing conditions.
Cirma is engaged in manufacturing and sale of Electrical Wiring and Interconnect Systems (EWIS) for aerospace, shipbuilding, allied Industries etc. It clocked a turnover of Euro 11.41 mn in CY 2022.
Valuation: Enterprise Value of 7.2 million euros. Equity value shall be derived from the Enterprise Value post customary adjustment for cash / cash like items, debt / debt like items and normalized working capital. Implied EV/EBITDA based on EBITDA for CY2022 is 7.3x
Objective: The transaction rationale can be summarized as follows:
– Company to become Tier 1 to Aerospace OEM and proximity to OEM to open further avenues for growth.
– Diversification to Electrical Wiring and Interconnect Systems (EWIS) for Aerospace, shipbuilding and other allied Industries from an existing portfolio of aero structure component, machining etc
– Aligned with growth strategy and synergistic with existing wiring harness capabilities of the Company
– This transaction will also help the Company in gaining access to the shipbuilding and allied Industries.
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