Samvardhana Motherson to acquire 81% stake in Honda Motor arm Yachiyo; check details
Also Read: Samvardhana Motherson to buy 100% stake in France-based Cirma Entreprise for 7.2 million euros ‘’The company has entered into a partnership with Honda Motor under which it will form an 81:19 strategic partnership with the latter where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies, said SAMIL. The acquisition requires approval from authorities in China, Brazil, United States, as well as the Reserve Bank of India, said SAMIL in the exchange filing.
Yachiyo Industry Co Ltd - a publicly listed firm on the Tokyo Stock Exchange, and has 4W and 2W businesses. It makes automobile parts like sunroofs, fuel tanks and resin products. Yachiyo's business has a book value of 59.2 billion yen as of March 31, reported revenue of about 116 billion yen and earnings before interest, taxes, depreciation, and amortization of 13 billion yen, according to SAMIL's statement.
The company's 4W business has developed multiple value-added next-generation products such as lighter plastic tailgates and type-IV hydrogen storage tanks. The 4W business employs about 3,200 people in manufacturing, research and development centers across eight countries including the US, Brazil, Mexico, China, Japan, Thailand, Indonesia and India.
The acquisition will provide SAMIL access to research and development (R&D) capabilities and foray into the global sunroof market along with pursuing other partnerships with Honda, said SAMIL. The deal with likely enable SAMIL an opportunity to offer its existing products and enter into other segments with Honda Motor and will also strengthen its presence in Japan, according to the statement.
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