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Acquired co will be EPS accretive: Motherson Sumi

Vivek Chand Sehgal, chairman, Motherson Sumi Group, says a smaller deal is on the anvil.


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Automotive parts maker  Motherson Sumi Systems will acquire Germany’s Scherer & Trier in a deal worth Rs 283 crore . While the acquired company is not profit-making yet, it will be earnings per share (EPS) accretive from the first year itself, says Vivek Chand Sehgal, chairman, Motherson Sumi Group.

In an interview to CNBC-TV18, Sehgal says the acquisition is debt-free and another similar deal is on the anvil.

The deal would further consolidate Motherson Sumi System’s “polymer business in Europe and North America”.

According to a statement released by Motherson Sumi, “The German entity develops and manufactures extrusion profiles, moulded parts made of thermoplastics and hybrid components made of metal and plastic catering to Original Equipment Manufacturers like Audi, BMW, Diamler, Ford, GM, VW etc, along with other customers.”

Transcript to follow soon.

Motherson Sumi stock price

On December 16, 2014, at 09:19 hrs Motherson Sumi Systems was quoting at Rs 417.00, up Rs 13.00, or 3.22 percent. The 52-week high of the share was Rs 450.00 and the 52-week low was Rs 178.25.

The company’s trailing 12-month (TTM) EPS was at Rs 6.70 per share as per the quarter ended September 2014. The stock’s price-to-earnings (P/E) ratio was 62.24. The latest book value of the company is Rs 21.61 per share. At current value, the price-to-book value of the company is 19.30.


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