Mumbai: Samvardhana Motherson Automotive Systems Group BV (SMRPBV), today announced the acquisition of a majority stake in Plast Met Plastik Metal San. İmalatveTic.A.Ş.(PM-Bursa) and Plast Met Kalıp San.veTic.A.Ş.(PM-Istanbul) together known as Plast Met group (Turkey) through its subsidiary Samvardhana Motherson Reflectec (SMR).
SMR will acquire a 75% stake and thus will enter into a partnership with the founder of Plast Met. The deal includes two companies of Plast Met group (“The Companies”), engaged in manufacturing of injection molded parts, sub-assemblies for mirrors, trim modules, and lighting systems. Plast Met also has the capabilities of manufacturing high-end complex injection molding tools that cater to customers in Turkey as well as other global markets. The Companies reported combined revenues of Euro 33mn in 2019 and Euro 28mn (estimated) in 2020.
Mr. Erol Senol, the founder of Plast Met will retain a 25% stake in The Companies and will continue to drive further business growth as a partner with SMR.
This acquisition will mark the SMR and Motherson group’s entry into Turkey. Turkey is a strategic growth market for the Motherson group, with annual passenger vehicle production of 1.4mn units and long-term growth potential. Entry into Turkey is consistent with the geographic expansion opportunities highlighted in the recent Vision 2025 presentation (refer to the Motherson website for details).
The transaction will also enhance Motherson group’s tooling capabilities and complement its existing manufacturing footprint. Turkey is likely to play a key role as a competitive sourcing hub and as a platform to serve the group’s customers in the European region. The proposed deal is expected to be closed within 3 months subject to receipt of necessary approvals and is expected to be EPS accretive.
Commenting on the deal, Mr. Vivek Chaand Sehgal, Chairman, Motherson Group said, “This acquisition marks another step towards the growth and diversification of Vision Systems vertical and the group overall. This is the 25th acquisition by Motherson Group and we will continue to work towards serving our customers with more products and service offerings globally. Turkey will be the 42nd country in Motherson’s global operations, which is in line with our philosophy of 3CX10.”
Mr. Erol Senol, Founder, Plast Met group said “I am delighted with the strategic partnership between Plast Met and Motherson. Both companies are aligned in their business objectives and philosophy. Together with the global know-how of Motherson Group and local expertise of Plast Met group, I am confident that the alliance will enhance value to our customers”
About Plast Met- Plast Met was founded in 1987 by Mr. Erol Senol, who is a first-generation entrepreneur. The group is based out of Turkey and is an important supplier of plastic molded parts, related subassemblies, and injection molding tools. It reported a turnover of Euro 33 million in 2019 and Euro 28mn (estimated) in 2020. Two facilities of Plast Met are located in Istanbul and Bursa in Turkey and employ approximately 400 personnel.