Indian auto components maker Motherson Group is set to acquire a majority stake in Turkey's Plast Met Group, a key supplier of plastic molded parts, related sub-assemblies and injection molding tools, the company said Monday.
The acquisition is being carried out for an undisclosed amount through its subsidiary Samvardhana Motherson Reflectec (SMR), Bloomberg reported by citing the group statement. SMR will acquire a 75% stake as part of the deal and will enter into a partnership with Plast Met.
"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 1.4 million units and long-term growth potential,” the statement said.
The deal includes two of the Turkish company's subsidiaries, Plast Met Kalıp in Istanbul and Plast Met Plastik in the northwestern province of Bursa. Both manufacture injection molded parts, sub-assemblies for mirrors, trim modules and lighting systems.
Motherson Group Chairperson Vivek Chaand Sehgal said, “This acquisition marks another step towards the growth and diversification of Vision Systems vertical and the group overall."
He added that this marks the 25th acquisition by Motherson Group and they “will continue to work towards serving our customers with more products and service offerings globally.”
"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 three months subject to receipt of necessary approvals," the statement added.
Erol Şenol, Plast Met Group founder said that 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,” Şenol was cited by Bloomberg.