Motherson Sumi Systemsto buy Germany’s Scherer & Trier

Delhi-based automotive parts manufacturer Motherson Sumi Systems Ltd,  has signed an agreement to acquire the assets of Germany's Scherer & Trier (S&T) for about €36 million (about Rs280 crore).

The assets include land, building and inventories along with the shareholding held in Mexican entities.

This acquisition WOULD consolidate MSSL's polymer business in Europe and the US. S&T has a turnover of about €240 million, MSSL said in a statement.

This acquisition includes two manufacturing facilities at Michelau, Germany, and Puebla, Mexico. SSL has made the acquisition through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRP BV), it added.

''S&T is a company with strong technological know-how and a well-established product line. The Group will get further enriched with the talented and experienced team which joins us as a part of this acquisition. The significant synergies between S&T's products and SMRP BV, will now allow Motherson to offer a more diversified range of polymer products to its customers," said V C Sehgal, chairman, Samvardhana Motherson Group.

The acquisition, which is subject to regulatory approvals, is expected to be completed in January 2015.

The German entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to Original Equipment Manufacturers like Audi, BMW, Diamler, Ford and General Motors among others, it added.

MSSL, set up in 1986 is the flagship company of the Samvardhana Motherson Group. Motherson Sumi Systems is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems of Japan.