Samvardhana Motherson International, a major Indian auto parts supplier, is set to acquire Atsumitec, a Honda Motor-affiliated company specializing in transmission and engine components. The acquisition is valued at 8.5 billion yen (approximately $56 million) and will see Motherson own 95% of Atsumitec, while Honda will retain a 5% stake. The deal is expected to close as early as March. Atsumitec, located in Hamamatsu, will continue to operate under its current name and President Hideyuki Suzuki will remain at the helm.
The acquisition is seen as a strategic move by Motherson to prepare for the transition to electric vehicles. As the automotive industry shifts towards more environmentally friendly powertrains, the demand for electric vehicle components is expected to increase significantly. By acquiring Atsumitec, Motherson will be well-positioned to capitalize on this trend and expand its portfolio of products and services.
Atsumitec has a long-standing relationship with Honda, dating back to its founding. As a result, the acquisition is seen as a natural evolution of their partnership. The deal also bodes well for Honda, as it will allow the company to maintain a significant stake in Atsumitec, while also giving it exposure to the Indian auto parts supplier’s global supply chain.
In terms of its plans for Atsumitec, Motherson has stated that it intends to maintain the company’s current operations and management structure, including President Hideyuki Suzuki. This suggests that the acquisition will be a bolt-on deal, with minimal disruption to Atsumitec’s day-to-day operations. Instead, the acquisition will likely be used as a springboard for Motherson to expand its presence in the Asian market, particularly in Japan, and capitalize on the growing demand for electric vehicle components.