Motherson Sumi Systems Limited
(MSSL), the flagship company of the Samvardhana Motherson Group (SMG), through
its step down subsidiary Samvardhana Motherson Automotive Systems Group B.V.
(SMRP BV), has announced the proposed
acquisition of Reydel Automotive Group (Reydel), a privately held portfolio
company of Cerberus Capital Management, L.P. (Cerberus) that manufactures
interior components and modules for global automotive customers. The purchase
price for the transaction is USD 201 million (Rs 1306 crore approx.).
This would be the 21st
acquisition from the Samvardhana Motherson Group and is intended to further
bolster Motherson’s offerings in the automotive Interiors space. Reydel’s
Interiors Product Portfolio includes Instrument Panels, Door Panels, Console
Modules, Decorative Parts and Cockpit Modules. Reydel’s global presence spans
20 plants and 16 countries, and is supported by a workforce of approximately
The acquisition would enable
both companies to capitalise on new opportunities in their existing and new
geographies, as well as within each others’ customer portfolios. Reydel’s
revenue for the year ended Dec 31, 2017 was USD 1,048 millionm (Rs 6810 crore
approx.) and EBITDA was USD 68 million (provisional, and in accordance with US
“With world class development
capabilities and strong customer relationships, we found great alignment with
our existing offerings at Motherson,” said Vivek Chaand Sehgal, Chairman,
Samvardhana Motherson Group. “The synergistic combination of complimentary
portfolios will create a stronger business. We are very excited about this
partnership. It brings us closer to meeting our 2020 targets and helps us
achieve ‘3CX 15’, our strategy to not have any component, customer or country
contributing more than 15% to our business,” he added.
“We are proud to have contributed to Reydel’s
significant accomplishments in recent years,” said Dev Kapadia, Senior Managing
Director of Cerberus and Co-Chair of the Cerberus Private Equity Investment
Committee. “Following a successful carve-out from Visteon, we partnered with
the business to develop a high-performing and focused management team that was
able to vastly improve financial performance. Since our acquisition in 2014,
Reydel’s EBITDA has transformed from USD (16) million in 2013 to USD 68 million
in 2017. Samvardhana Motherson Group is a world class company, and this
transaction would fulfil one of our key objectives, which is to position the
business with a leading entity that will take Reydel to an even higher level of
performance and success,” Kapadia
Benoit Rolland, CEO of Reydel,
said, “The Cerberus team has been a great partner for Reydel during our efforts
to improve our profitability and carve-out the business. We look forward to
joining the Samvardhana Motherson Group, and this transaction would ensure that
we will have excellent opportunities as part of one of the world’s leading suppliers
to the automotive industry.”
The transaction will be
discussed with employee representatives and, subject to obtaining customary
regulatory and other approvals, could close within the next four to six months.
The consideration is expected to be financed using existing cash and banking
limits at SMRPBV. Evercore acted as exclusive financial advisor to Cerberus and
Reydel, and Linklaters LLP acted as legal advisor. Latham & Watkins acted
as legal advisor to Motherson for the transaction and Norton Rose as legal
advisor to Motherson for Anti-trust related matters.
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