Samvardhana Motherson International Limited (SAMIL) announced an agreement to acquire 100% of the global wiring harness business of Nexans Autoelectric GmbH (AutoElectric). The enterprise value is €207 million on a cash and debt-free basis, subject to adjustments. The deal is expected to be completed by Q1 FY27, pending regulatory approvals and employee consultation. This move will significantly bolster Motherson’s wiring harness capabilities.
Acquisition Announcement
Samvardhana Motherson International Limited (SAMIL) has entered into exclusive negotiations to acquire 100% of the global wiring harness business of Nexans autoelectric GmbH (“AutoElectric”). The transaction, conducted through Motherson Global Investments B.V. (MGI B.V.), is valued at €207 million on a cash and debt-free basis, subject to closing adjustments.
Target Company Details
AutoElectric is a 60-year-old global manufacturer specializing in automotive wiring harnesses for passenger and commercial vehicles. The company reported revenues of €749 million in CY 2024. Their product range includes low-voltage and high-voltage powertrain harnesses, body harnesses, specialty harnesses, and components. The company has a strong global presence with 22 facilities in 11 countries and a workforce of over 13,000 employees.
Strategic Rationale
The acquisition aims to create a globally scalable platform for Motherson in the wiring harness business, improving innovation and operational efficiency. The combined business is expected to enhance Motherson’s ability to offer next-generation products across passenger and commercial vehicles and ensures global competitiveness. This acquisition will also enable cross-sell opportunities with Motherson’s existing product portfolio.
Transaction Timeline
The deal is anticipated to close by Q1 FY27, pending customary closing conditions, employee consultation, and regulatory approvals. This acquisition is expected to be cash EPS accretive for Motherson.
Financial Snapshot
Key financial figures for AutoElectric include:
- CY 2022: Revenues of €636 million
- CY 2023: Revenues of €752 million
- CY 2024: Revenues of €749 million
Source: BSE