SAMIL in talks to acquire Nexans Autoelectric wiring harness biz at 207 mn euros enterprise value

New Delhi, Dec 22 (PTI) Auto components major Samvardhana Motherson International Ltd on Monday said it has entered into talks to acquire the global wiring harness business of Nexans autoelectric GmbH at an enterprise value of 207 million euros (over Rs 2,175 crore).

The company, through material subsidiary Motherson Global Investments B.V, has entered into exclusive negotiations to potentially acquire 100 per cent of the global wiring harness business of Nexans Autoelectric GmbH (AutoElectric), subject to employee consultation and necessary regulatory approvals, Samvardhana Motherson International Ltd (SAMIL) said in a statement.

The enterprise value of the transaction is 207 million euros on a cash and debt-free basis, with the actual payout to be determined based on closing adjustments, it added.

"This acquisition is a significant milestone for Motherson. It will enable us to support our key customers with wiring harness solutions and expand our global footprint to additional locations," Motherson Group Chairman Vivek Chaand Sehgal said.

He further said,"We believe that our executional capabilities, combined with AutoElectric's strong engineering capabilities and customer relationships, will drive innovation and sustainable growth." SAMIL said the potential transaction would create a globally scalable platform for Motherson in the wiring harness business across passenger vehicles and commercial vehicles.

The combined business will benefit from driving rapid innovation across various powertrains, sharing of best operational practices and combined development of next-generation products across passenger vehicles (PVs) and commercial vehicles (CVs) while ensuring agility and competitiveness, it added.

AutoElectric is a nearly 60-year-old global manufacturer of automotive wiring harnesses for both passenger and commercial vehicles.

It operates 22 facilities in 11 countries with over 800 engineers and a workforce of over 13,000 employees.

The company's total revenue for CY 2024 was 749 million euro with PVs contributing approximately 81 per cent while CVs 19 per cent. Its product portfolio spans low-voltage and high-voltage powertrain harnesses, body harnesses, speciality harnesses, and components.

SAMIL said AutoElectric is well-positioned for evolving powertrain mixes, including ICE, hybrid, and EVs.

The potential transaction is subject to consultation with employee representatives and receipt of required regulatory approvals, with closure expected by Q1 FY27, the company added. PTI RKL DR DR