Indian automotive components firm Motherson Sumi Systems has acquired an 80% stake in Germany-based plastics component maker Peguform Group from Cross Industries AG. The acquisition was through a joint venture in which Motherson Sumi would hold a 51% stake and Samvardhana Motherson Finance 49%.
The company said it will fund the deal through overseas loans and has appointed ICICI Bank as the lead arranger. It will pay EUR72.2m for its stake in the German auto interiors manufacturer.
The deal values the German company at EUR141.5m.
Cross Industries will retain a 20% stake.
The Peguform deal comes after the firm’s acquisition of Visiocorp, the UK based manufacturer of rear-view mirrors, in 2009, cementing its presence in Europe. Gaining control of Peguform will give the company a big foothold in business with Volkswagen, BMW and Daimler.