Samvardhana Motherson, a leading player in the automotive products and solutions space, has announced the completion of a strategic asset sale. The company has sold its tool and process development services business to a leading German company, Dürr AG, for an undisclosed amount.
The divested business, which was previously reported as non-core, has been a part of Samvardhana Motherson’s portfolio for over two decades. The company had identified the segment as non-core and had been exploring options for divestment. The sale is seen as a strategic move to focus on its core competencies and investments in the automotive space.
The tool and process development services business has been a valuable addition to Samvardhana Motherson’s portfolio, having provided cost-effective and efficient solutions to automakers. The divestment is expected to be beneficial for the company, as it will allow it to redirect resources to its core automotive products and solutions business, which has significant growth potential.
Dürr AG, the acquiring company, is a leading provider of process and production solutions in the automotive and other industries. With the acquisition, Dürr AG will gain access to Samvardhana Motherson’s extensive knowledge and expertise in tool and process development, enabling it to strengthen its position in the global market.
The deal is seen as a positive development by analysts, who believe that Samvardhana Motherson’s decision to divest its non-core business will lead to improved focus and increased efficiency in its core operations. Moreover, the sale will generate a decent return for the company, further bolstering its financials.
In a statement, Samvardhana Motherson’s management said, “This strategic asset sale allows us to focus on our core automotive business, which has significant growth potential. We believe this deal will create value for our stakeholders and further strengthen our position in the industry.”
The acquisition is expected to close in the coming weeks, subject to certain customary closing conditions.