in collaboration with its sibling firm Samverdhan Motherson Finance. The acquisition is set to be complete by the end of February 2009.
With this acquisition MSSL gain a global leadership position in the mirrors business. The company will get access to 17 manufacturing plants of Visiocorp and its global OEM customers such as BMW, Daimler, VW, Nissan, Renault, General Motors and Ford.
MSSL already have a joint-venture of 49:51 with Visiocorp in India, named Visiocorp Motherson. It had a 45% share in domestic market for rear and side view mirrors for passenger cars. The acquisition will be done by creation of a Special Purpose vehicle (SPV). In this SPV, MSSL and SMFL will hold share in 51:49 ratio. The proposed capital for SPV is €30m and Motherson plans to fund its portion from internal resources.
Visiocorp sales in 2007 were over €700m and EBITDA stood at €48m. MSSL is a leader in wire harnessing, air compressors, metal parts and fuel pumps. It controls 65% of the domestic passenger vehicle market. To diversify its product portfolio, the company is increasing content per car and is focusing to enter higher-margin segments including the high-level assemblies and modules.
The company are also emphasizing a global product portfolio with the aim to achieve 60% of its consolidated turnover from overseas clients.
