M&A

M&A

SJS Enterprises acquires 90% in Indian unit of Spain's Walter Pack Group for Rs.239-Cr

BSE Announcement   Press Release  

Publicly-listed SJS Enterprises Ltd is to acquire 90.1% stake in Walter Pack Automotive Products India Pvt Ltd (WPI) for a total cash consideration of INR 239.3 Cr. Singhi Advisors is the financial advisor to the seller - Walter Pack Spain - for the transaction. As per the agreement, out of the 90.1%, SJS will acquire the entire 85.0% stake from Walter Pack Spain and will acquire 5.1% stake from Indian promoter and founder, Roy Mathew who will continue to own 9.9% stake and will continue to lead the business. SJS would pay of INR 239.3 Cr in cash for 90.1% stake at an LTM EV / EBITDA of ~7x. Total upfront consideration to be paid at closing would be INR 2,29.8 Cr and balance would be paid over the next 18 months. SJS expects to close the acquisition in 5 – 6 weeks The turnover of the target for FY 2022-23 is INR 120 Cr (Provisional), up from INR 98.8 Cr in FY22. WPI is a leader in the design and development of high value-added functional decorative parts in the Indian market. The alliance includes the provision of ongoing technology support to SJS for the next three years and lays the foundation for a strategic collaboration with Walter Pack and Antolin, owner of 40% of the Spanish company's shares since December 2018.