Samvardhana Motherson has agreed to acquire 100% of Nexans Autoelectric GmbH’s wiring harness business for €207 million, pending employee consultation and regulatory approvals. The acquisition enhances Motherson’s wiring harness capabilities for passenger and commercial vehicles. Nexans Autoelectric, with €749 million revenue in CY2024, operates 22 facilities across 11 countries and employs over 13,000 people. The deal is expected to be completed by Q1 FY27 and is projected to be cash EPS accretive.
Acquisition Overview
Samvardhana Motherson International Limited (SAMIL) has announced its intent to acquire 100% of the global wiring harness business of Nexans autoelectric GmbH (AutoElectric). The enterprise value of this transaction is €207 million on a cash and debt-free basis, with the final payout adjusted at closing.
Strategic Rationale
This acquisition will create a scalable global platform for Motherson in the wiring harness business. It allows for the integration of best practices, the development of next-generation products, and ensures enhanced agility and competitiveness. The inclusion of AutoElectric is expected to bolster Motherson’s capacity to drive innovation and sustainable growth in the automotive sector.
Target Company: AutoElectric
AutoElectric is a global manufacturer of automotive wiring harnesses with a revenue of €749 million in CY2024. The company’s product portfolio includes low-voltage and high-voltage powertrain harnesses, body harnesses, specialty harnesses, and components. Operations span across 22 facilities in 11 countries, supported by over 800 engineers and a skilled workforce of approximately 13,000 employees.
Financial Impact and Timeline
The transaction is anticipated to be cash EPS accretive and is expected to conclude by Q1 FY27, contingent upon employee consultation and regulatory approvals.
Geographical Split
- Americas: 24% of sales for CY24
- Europe and North Africa: 74% of sales for CY24
- China: 02% of sales for CY24
Customer Split (2024)
The primary customers include Daimler Truck, GM, VW, Audi, Porsche and Mercedes Benz.
Source: BSE