Shares of Samvardhana Motherson International (SAMIL) rose 6% to Rs 84.20 on the BSE in intraday trade on Monday after the company announced the acquisition of a 100% stake in Germany’s SAS Autosystemtechnik GmbH (SAS) at an enterprise value of €540 million (about Rs 4,800 crore). A combination of debt and internal accruals will fund the transaction.

The acquisition was made through Samvardhana Motherson Automotive Systems Group B.V., a subsidiary of SAMIL in the Netherlands. SAS is the world’s leading provider of assembly and logistics services to the automotive industry. SAS’ revenue in FY22 was €896 million (~Rs 7,950 crore), and EBITDA was €102.7 million (~Rs 910 crore, with a margin of 11.5%).

The transaction will further strengthen Motherson’s integration with the global automotive supply chain and increase its proximity to customers. With its strong assembly, automation and logistics capabilities, “SAS” is well-positioned to benefit from the secular trend of OEMs outsourcing module assembly to trusted suppliers, SAMIL said in an exchange filing.

SAMIL further stated that the purpose of the acquisition is to strengthen the integration of the automotive supply chain, thereby increasing the distance to customers, product diversification across customers, products and geographies, and increasing exposure to electric vehicle projects. SAMIL said the company is well-positioned to take advantage of the emerging trend of OEMs outsourcing module assembly and has extensive experience and capabilities in assembly operations, automation and managing complex logistics.