Samvardhana Motherson International (SMI), through its wholly-owned subsidiary of SMRP B.V. (SAHN B.V.), has entered into an agreement to acquire an 81% stake in Yachiyo’s 4W (Y4W) business.
Motherson will form an 81:19 strategic partnership with Honda Motor, where both partners will drive the company towards a strong and sustainable future and be fully prepared for next-generation products and technologies.
After successfully closing this transaction, Motherson will become a partner of choice for Honda Motor. This transaction enables further diversification for Motherson in line with its 3CX10 strategy, along with opportunities for the company to offer these products to other OEMs across the globe.
Yachiyo Industry Co is a publicly listed (Tokyo Stock Exchange) subsidiary of Honda Motor Co, comprising 4W and 2W businesses. As a part of the overall transaction, the 2W business (housed under Goshi Giken) will be transferred to Honda Motor before Motherson acquires an 81% stake in Yachiyo’s 4W business.
Yachiyo 4W business employs about 3,200 employees in its 13 manufacturing facilities and three R&D centres across eight countries such as the USA, Brazil, Mexico, China, Japan, Thailand, Indonesia and India, with reported revenue and EBITDA of € 824 million and € 94 Mn respectively for FY23. The equity value of the business is €145 million for a 100% stake.
As a worldwide strategic supplier to Honda Motor with a fully aligned footprint, Yachiyo 4W supports Honda Motor in substantially all of its sunroof and fuel tank requirements at each manufacturing location. The strong relationship has been forged on the back of decades of excelling on Honda Motor’s strict technical and quality expectations.
Sunroof systems have high growth potential globally due to increased demand and are expected to see a surge in application across all car segments. Transition to Hybrid will continue to see the use of plastic fuel tanks. The trend of fuel cell powertrain is also aligned with Type-IV hydrogen storage tanks in the advanced stages of development.
Vivek Chaand Sehgal, Chairman, Motherson, said, “This acquisition is an important landmark for Motherson as we are honoured to be handpicked by Honda San for a global partnership. These new product segments are in line with our increasing content per car strategy as well as our customer-centric approach. We believe this business will be highly synergistic with Motherson’s existing portfolio as we see ample opportunities to grow this new business globally by leveraging our global relationships with automotive OEMs.”
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