Reydel Automotive bought for $201 million by Motherson Sumi

The flagship company of the Samvardhana Motherson Group, Motherson Sumi Systems Ltd, has agreed to acquire for $201 million, Reydel Automotive Group.

Reydel is a privately held company based in France, controlled by buyout firm Cerberus Capital Management LP, manufacturing interior parts of vehicles for customers.

Reydel has 20 manufacturing units in 16 countries, employing 5,650 people. Motherson Sumi said Reydel's revenue for 2017 was $1.05 billion and operating profit of $68 million.Its customers are Renault Groupe and Groupe PSA, French car makers.

Motherson will expand itself in Argentina, Croatia, Morocco and the Philippines and this is its 21st acquisition.Transaction will be completed in 4-6 months.

Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group said “With world-class development capabilities and strong customer relationships, we found great alignment with our existing offerings at Motherson. We will be able to meet our 2020 targets and helps us achieve ‘3CX 15’, our strategy to not have any component, customer or country contributing more than 15% to our business”. Instrument panels, door panels, console modules, decorative parts and cockpit modules are included in companies interiors product portfolio.

Benoit Rolland, chief executive of Reydel Automotive Group said “The Cerberus team has been a great partner for Reydel during our efforts to improve our profitability and carve out the business. We look forward to joining the Samvardhana Motherson Group, and this transaction would ensure that we will have excellent opportunities as part of one of the world’s leading suppliers to the automotive industry.”  Reydel Automotive Group had a gross debt of $25 million and cash reserves of $88 million on its books, as of Dec'31,2017 .

Ref. : https://www.livemint.com/Companies/lFg6D3qjWGIAtPVrLS6NYJ/Motherson-Sumi-buys-Reydel-Automotive-for-201-million.html --- Dated: Apr 03 2018.