Samvardhana Motherson Automotive Systems Group BV (SMRPBV) has reported that it is acquiring a 100 per cent stake in Ichikoh Industries, Valeo SE’s subsidiary, at an enterprise value of Japanese Yen (JPY) 5.2 billion.

Reportedly, the acquisition is taking place through its Vision systems division. It would be subject to customary closing adjustments for debt/debt-like items and working capital.

The transaction includes Ichikoh’s mirror business in Japan and China, catering primarily to Japanese original equipment manufacturers (OEMs). The target business (development and manufacturing of automotive mirrors and associated product) had reported revenue of JPY 15.8 billion in 2021.

With this acquisition, Motherson would add three manufacturing facilities across Japan and China and 260 patents to its IP portfolio. The company’s chairman said that inorganic growth is integral to the company’s Vision 2025. Motherson, through this transaction, will acquire a design and manufacturing footprint in Japan. The said transaction would also help Visions Systems to expand its geographical footprint in China and in its ability to grow business with Japanese OEMs.