Samvardhana Motherson International (SAMIL) has entered into an agreement to acquire 100 per cent stake in Rollon Hydraulics (Rollon) for around ₹103 crore, which will become wholly owned subsidiary of SAMIL post-completion of the transaction.
It will be an all-cash transaction and is expected to be closed in second quarter of FY24, SAMIL in a regulatory filing.
Rollon is engaged in manufacturing, assembly and supply of high precision turned parts, spools, and other machined components with critical engineering applications for the agriculture and off-highway segment from its two facilities based out of Bengaluru, it said. Rollon reported revenue of around ₹60 crore for FY23, with a healthy profitability.
Foray into new segments
“We are getting access to a new industry segment of construction and material handling for our precision metal business. We believe this business is highly synergistic with Motherson’s existing business and offers ample opportunities to grow this business in India, Mexico and other geographies. This is our fifth acquisition in India in the past 12 months, reaffirming India’s importance in our future plans,” Vivek Chaand Sehgal, Chairman, Motherson, said.
Following the industry trends of supplier consolidation, coupled with global footprint of Motherson, this acquisition will create further organic growth opportunities through increase of global share of business with existing and new customers, he said.
The transaction will also provide Motherson access to customer base across the off-highway industry along with specialised machining, plating, surface treatment and sub-assembly capabilities. The proposed transaction will contribute towards the growth of precision metals and modules division, the company added.