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Home arrow Alliances and Joint Ventures arrow Motherson Sumi to acquire Peguform Group, Germany from Cross Industries AG
Motherson Sumi to acquire Peguform Group, Germany from Cross Industries AG Print E-mail
Written by Anand   
Thursday, 14 July 2011
New Delhi: At the meeting held on 13th July 2011 the board of directors of Motherson Sumi Systems Limited has in principle approved the proposal to (jointly with Samvardhana Motherson Finance Limited) acquire 80% of the shareholding of Peguform Group, Germany from Cross Industries AG.

Cross industries would continue to hold 20% shareholding. This would also include 50% holding in Wethje Carbon Composite which is a part of Cross Industries. These acquisitions are subject to the regulatory and other approvals as may be necessary in this regard.

Peguform is a supplier of interior and exterior products for the automotive and related industries, involved in development, manufacture and distribution of bumper systems, plastic components for vehicle exteriors, vehicle cockpits, dashboards and vehicle interior trims.

It has one of the largest state-of-the-art painting facilities in Europe. The company has over 200 injection molding machines and employs over 7000 employees. Strength of the company lies in creating new applications of plastics and engineering. The company has a strong history of innovations and Firsts in the European Automotive Plastics industry.

The acquisition would be made through a Joint Venture in which Motherson Sumi Systems Limited would hold 51% and Samvardhana Motherson Finance Limited would hold 49% share. This SPV would acquire 80% shares of Peguform Group while 20% shares would remain with the existing shareholder Cross Industries AG.

The product range of Peguform has strong synergies with the existing product range of SMG in plastic injection molding, door panels, Instrument Panels and Bumpers. This acquisition would provide new technologies and depth to the Polymer Product range of the Group.

Commenting on the occasion Mr. V.C. Sehgal, Chairman Samvardhana Motherson Group and Vice Chairman Motherson Sumi Systems Limited said – “Apart from the synergies that SMG would bring to the acquired entity, the product range of Peguform complements our polymer product range in India. There are obvious synergies in terms of customers served which will further strengthen the position of the Group as a global module supplier to automotive OEMs.”

The major customers include Volkswagen Group, BMW, Porsche, PSA Peugeot Citroën, Renault-Nissan, Daimler and GM. Peguform’s 2010 sales were 1.37 Billion Euro and a reported EBIDTA of Euro 66.87 Million.

Peguform is headquartered at Bötzingen in Germany and has 22 facilities including 5 Module Centres and 17 production sites across the world: Germany (7), Spain (4), Portugal (1), Brazil (2), Mexico (1), China (1) and Slovakia (1)

Peguform-Beteiligungs-GmbH, based in Austria is the parent company of Peguform Group. It is in turn owned by CROSS Industries AG, a holding company with strategic focus on the automotive sector.

Samvardhana Motherson Group (SMG) has a strong experience of acquisitions. The experience of acquisition of Visiocorp to form SMR, achieving profitability of the venture in the first year of acquisition and integrating it with SMG is going to be very useful to the Group.

MSSL through its division has been in the field on Plastic Molding, assemblies and module integration for more than a decade. Acquisition of Peguform business would be in line with the existing business in India and would add significant value by integrating & consolidating the business in India & globally.

Samvardhana Motherson Group’s automotive product portfolio comprises electrical distribution systems (wiring harnesses), automotive rearview mirrors, molded plastic parts and assemblies, injection moulding tools, molded and extruded rubber components, modules and systems including Cockpits /IPs, door trims, bumpers, lighting systems, air intake manifolds, pedal assemblies, HVAC systems, , vehicle air conditioning systems, roof hatches, transport refrigeration and cooling systems, cabins for off-highway vehicles, machined metal products, cutting tools, thin film coating metals, IT services, design engineering and CAE services. The group has also invested in technologies that provide manufacturing support, including compressors, paint coating equipment, auxiliary equipment for injection moulding machines and automotive manufacturing engineering services.

The group has nearly 25% share of global passenger car exterior rearview mirrors and over 65% share of passenger car wiring harnesses in India with an increasing global presence. It is also one of the leading suppliers of Plastic modules to the India automotive industry. The group has over 90 manufacturing facilities supported by design centres and support offices spread over 23 countries.

With a turnover of USD 2.7 billion in 2010-11, the group is supplying to all the major automobile manufacturers across the world.

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