New Delhi, Jun 15 (PTI) Auto components maker Samvardhana Motherson International Ltd on Thursday said its arm Samvardhana Motherson Automotive Systems Group BV will fully acquire French entity Cirma Entreprise SAS at an enterprise value of 7.2 million euros (nearly Rs 65 crore).

Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has signed a binding undertaking to acquire a 100 per cent stake in Cirma Entreprise from Vinci Energies France, Samvardhana Motherson International said in a regulatory filing.

Also Read | World Population Forecast For 2100: India to Remain Most Populous Country in World by the End of 21st Century, Here's How Much Country's Population Would Be in Year 2100.

Cirma Entreprise is into aerospace, shipbuilding and allied industries. The cost of acquisition is pegged at an enterprise value of 7.2 million euros, it added.

On the rationale behind the acquisition, the company said Motherson will become a Tier 1 to Aerospace OEM (Original Equipment Manufacturer) and proximity to OEM would open further avenues for growth.

Also Read | Cyclone Biparjoy: Defence Minister Rajnath Singh Speaks to Three Service Chiefs, Reviews Preparation of Armed Forces To Deal With Impact.

Also, it will help in diversification to electrical wiring and interconnect systems (EWIS) for aerospace, shipbuilding and other allied industries from an existing portfolio of aero structure components, machining etc, it added.

The acquisition is also aligned with the growth strategy and synergistic with the existing wiring harness capabilities of Motherson, and this transaction will also help the company in gaining access to the shipbuilding and allied industries, the filing said.

Cirma Entreprise clocked a turnover of 11.41 million euros in the calendar year 2022.

The transaction will be presented to the employees' representatives body of Cirma Entreprise, and once agreed by Vinci Energies France, will be subject to customary closing conditions, the company said.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)