Samvardhana Motherson International Limited (SAML), formerly known as Motherson Sumi Systems Limited has entered into an agreement to acquire a 100% stake in Rollon Hydraulics Private Limited.
The acquisition is valued at an enterprise value of Rs 76.5 crore as of March 31, 2023. In terms of equity value, the cost of acquisition is Rs 103 crore for the complete stake.
With the acquisition, SAML aims to strengthen its existing Precision Metals & Modules division, and foray into construction equipment, agriculture equipment, and material handling markets via complex ‘Spools & turned parts’ for hydraulic valve applications, as per the statement.
SAML, an auto parts maker, stated in a regulatory filing that the transaction is expected to be concluded in the second quarter of the financial year 2023-24, subject to the satisfactory fulfillment of closing conditions.
Rollon Hydraulics, based in Bengaluru, possesses the capabilities to manufacture, assemble, and supply high-precision turned parts, spools, and other machined components with critical engineering applications. It operates two manufacturing facilities.
