M&A

M&A

Samvardhana Motherson acquires assets of US auto part supplier Bolta for $16-M

BSE Announcement  

Publicly-listed Samvardhana Motherson Automotive Systems Group, through its subsidiary SMP Automotive Systems Alabama Inc, (SMP Alabama), has acquired the assets of Northport, AL (USA)-based Bolta US Ltd via US bankruptcy code (“Chapter 11”) proceedings for about USD 16 million in cash. The turnover of the target, which is mainly engaged in the manufacturing and sale of chrome plated exterior and interior polymer components for automotive applications, for CY22 is estimated to be about USD 58.8 million. The target is the only approved chrome part supplier to a leading German OEM in the USA, with customers consisting of German OEMs and other Tier 1 suppliers. SMP Alabama bought USD 35.7 million worth of Bolta's fixed assets (including USD 31.8 million of tangible assets and USD 3.9 million of intangible assets) and USD 4.7 million of its inventory, free and clear from all liens. The asset acquisition would enable vertical integration of SMP Alabama's operations and its foray into the manufacture and sales of chrome-plated polymer parts, strengthening its position in the automotive decorative parts market in the US region.