Motherson Sumi in the limelight

Motherson Sumi is going great guns today! Finding a place amongst the top gainers on the BSE, the stock price rose 6% to Rs.343.80. Its 52-week high stands at Rs.395.

Marking this as its 21st acquisition, the company, through its step down subsidiary, Samvardhana Motherson Automotive Systems (SMRP) announced that it would be taking over Reydel Automotive. This is 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 $201 million.

This buy is considered by most analysts as a good step ahead for further marking its presence in the automotive interiors space.

This acquisition brings the company closer to meeting its 2020 targets and help achieve ‘3CX 15’ - its strategy to not have any component, customer or country (3C) contributing more than 15% to its business.