In a strategic move to bolster its global footprint and capabilities, Samvardhana Motherson International Limited (SAMIL) announced its decision to acquire Japan-based Atsumitec Co., Ltd. for $57 million (INR 482 crores). This acquisition will be executed through a 100% subsidiary of Samvardhana Motherson Automotive Systems Group B.V. (SMRP B.V.) under a special-purpose vehicle named SAHN B.V.
The transaction, approved during the SAMIL Board meeting on December 6, 2024, reflects the company’s ambition to strengthen its position in precision automotive components. Atsumitec specializes in high-precision machined components, including gear shifters, chassis parts, and transmission components for two-wheelers and four-wheelers. The acquisition also extends SAMIL’s reach to Atsumitec’s operations across Japan, Thailand, Hong Kong, the USA, Vietnam, China, Indonesia, and Mexico.
Acquisition Framework
The deal entails Motherson acquiring a 95% stake in Atsumitec, with Honda Motor retaining a 5% shareholding. The acquisition will proceed in multiple steps:
- Initial Share Procurement:
A special-purpose company (SPC), set up by the seller, has already secured a 31.75% stake from Atsumitec’s existing shareholders, which include management, founding family members, and employees. The SPC aims to reach a minimum threshold of 48.02% before transferring shares to SAMIL. - Regulatory Approvals:
Following the threshold achievement and regulatory clearances, expected by Q4 FY2025, SAMIL will consolidate its control over Atsumitec and reconstitute its board. - Final Shareholding Adjustments:
Remaining shares from other shareholders will be addressed through a “squeeze-out” or stock consolidation process, as per Japanese regulations. Atsumitec will also initiate a share buyback of Honda’s stake, finalizing Motherson’s 95% ownership structure. - Expansion in Indonesia:
On the buyback date, SAMIL will also acquire Honda Motor’s 49% stake in Atsumitec Indonesia, further solidifying its presence in the Asia-Pacific region.
Financial Overview
The locked-box deal values Atsumitec’s equity at JPY 8.5 billion (approximately $57 million). As of FY2023-24, Atsumitec reported a turnover of JPY 62 billion ($412 million) and a book value of JPY 31 billion ($207 million). SAMIL confirmed it maintains a robust net cash position at the consolidated level.
Timeline and Outlook
Founded in 1949, Atsumitec has been a prominent player in automotive components. The acquisition is anticipated to close by Q1 FY2026, subject to satisfactory completion of outlined conditions. This move aligns with SAMIL’s strategic vision of expanding its technological capabilities and global market share, particularly in precision manufacturing.
Strategic Implications
The acquisition underscores SAMIL’s commitment to becoming a global leader in the automotive components sector. By integrating Atsumitec’s expertise and operations, SAMIL is poised to deliver enhanced value to its customers while reinforcing its role in the evolving mobility landscape.
This announcement reflects SAMIL’s ongoing efforts to strengthen its portfolio through strategic acquisitions, consolidating its market position as a key supplier of cutting-edge automotive solutions.
