As per reports, Indian auto parts manufacturer Samvardhana Motherson International (SMIL) (SAMD.NS) announced a significant acquisition, marking its second in the current month. The company has purchased Germany's Dr. Schneider Group for 118.3 million euros ($131.6 million).

Dr. Schneider Group, which operates under Dr. Schneider Holding, specializes in manufacturing interior components for vehicles, including panels and lighting. Notably, the German company faced insolvency in September 2022, as stated by Samvardhana Motherson. The acquisition was conducted through an insolvency process, and it is anticipated to be concluded by the third quarter of fiscal 2024, as per the company's statement.

With a workforce of 4,500 employees, Dr. Schneider Group operates across seven facilities located in Germany, Spain, Poland, the U.S., and China, as mentioned by SMIL.

"We believe we will be able to turn around this business... We see a lot of synergies and untapped potential, especially on the research and development side," remarked Chairman Vivek Chaand Sehgal in a statement. The acquisition presents an opportunity for SMIL to capitalize on untapped potential and explore synergies within the interior components manufacturing segment.

This latest addition adds to SMIL's portfolio of notable acquisitions, demonstrating its commitment to expanding its presence in the automotive parts manufacturing industry.

In a noteworthy development earlier this month, the Indian company announced its intention to purchase a majority stake in the four-wheeler business of Japan-based auto-part maker Yachiyo Industry (7298.T) from Honda Motor Co (7267.T).

The strategic acquisitions reflect Samvardhana Motherson International's active pursuit of growth and consolidation within the auto parts manufacturing sector. Furthermore, the acquisition of Dr. Schneider Group holds the potential for turning around the business and leveraging research and development capabilities to unlock new opportunities.

Image source: Automotive News Europe