Auto parts maker Samvardhana Motherson International Ltd (SAMIL), through its indirect wholly owned subsidiary Motherson Global Investments B.V. (MGI BV), has acquired an 81% stake in Yutaka Giken Co. Ltd. (YGCL) and an 11% stake in Shinnichi Kogyo Co. Ltd.
YGCL, listed on the Tokyo Stock Exchange, manufactures metal components and assemblies such as rotors and stators for motors, drive systems, brake systems and thermal management systems. Honda Motor Co. currently holds a 69.66% stake in YGCL, with the remainder owned by public shareholders.
The debt-free YGCL operates 13 manufacturing facilities and one R&D centre across key global markets including Japan, China, the United States, Thailand, Brazil, India, Indonesia, Mexico and the Philippines. The acquisition cost for the 81% stake is $184 million.
Shinnichi Kogyo is a subsidiary of YGCL, in which YGCL holds a 62% stake.
The acquisition is expected to deepen SAMIL’s longstanding relationship with Honda and enhance its presence among Japanese original equipment manufacturers (OEMs). It will also enable the company to leverage YGCL’s product portfolio to expand business opportunities with other OEMs, particularly in emerging markets.
In a related move, SAMIL has also acquired 100% of Yutaka Autoparts India Pvt Ltd from YGCL. Post the deal, Yutaka India has become a wholly owned subsidiary of SAMIL