New Delhi: Samvardhana Motherson International Limited (SAMIL), through its subsidiary Samvardhana Motherson Automotive Systems Group BV (SMRPBV), has entered into an agreement to acquire assets and shares of the Dr. Schneider Group entities. The acquisition was made from the insolvency administrator, Dr. Joachim Exner.
Dr. Schneider Group is renowned for its production of high-end, innovative, and integrated electronic interior polymer components and systems, including smart surfaces and lighting modules. The company is a technology leader in air-vents, decorative interior polymer components with illumination, and has a strong presence in premium vehicles. With approximately 4,500 employees across 7 facilities in 5 countries (Germany, Spain, Poland, USA, China), Dr. Schneider Group has established itself as a key player in the automotive sector.
One of the standout features of Dr. Schneider Group is its unwavering focus on research and development, leading to the filing of over 200 patents. The company’s dedicated team of 240+ engineers operates from a fully equipped R&D centre in Germany, responsible for developing more than 90% of its products in-house. Additionally, Dr. Schneider Group possesses in-house tooling capabilities for its entire product range. Despite these strengths, the company encountered financial difficulties and filed for insolvency on September 22 due to unsuccessful operational and financial restructuring.
Motherson, a leading Tier 1 supplier of polymer-based interior modules, has been collaborating closely with automotive Original Equipment Manufacturers (OEMs) to enhance the interior experience in vehicles. The acquisition of Dr. Schneider Group brings forth synergies between the two companies, especially in the areas of aesthetics and interior illumination, which are becoming increasingly vital in the rising trend of premiumization.
Moreover, this acquisition allows Motherson to gain access to Dr. Schneider Group’s innovative electronic interior polymer components. Motherson can subsequently leverage its existing global footprint and customer relationships to offer these innovations and technologies to emerging markets and medium segment customers.
The transaction’s overall enterprise value is approximately EUR 118.3 million, subject to certain adjustments. The deal is a response to the demands of Motherson’s customers, and the company expects to close it by the third quarter of the financial year 2023-24, pending customary closing conditions and required regulatory approvals.
Vivek Chaand Sehgal, Chairman of Motherson, said, “We have been trusted by our customers to take over this business. With their continued support, we believe we will be able to turnaround this business like we have done every time in the past. We see a lot of synergies and untapped potential in this business, specially on the R&D side. We are looking forward to welcoming 4,500 people on our journey towards our Vision 2025 and beyond.”
