Samvardhana Motherson International Limited (SAMIL) has announced its plan to acquire a 95% stake in Japan-based Atsumitec Co Ltd for $57 million. Atsumitec headquartered in Hamamatsu, Japan specialises in producing gear shifters, chassis, and transmission components for two-wheelers (2Ws) and four-wheelers (4Ws). The company operates nine facilities across developed and emerging markets, including the United States, China, Indonesia, Mexico, Thailand, and Vietnam, employing over 3,400 people.
In the financial year 2023-24, Atsumitec recorded a turnover of approximately $412 million, reflecting its significant presence in the automotive industry. The acquisition to be executed through SAMIL’s 100% subsidiary SMRP B.V. aims to bolster Motherson’s capabilities in high-precision machined components and expand its footprint across global markets.
The acquisition is structured in multiple steps, beginning with SAMIL securing a minimum 48.02% stake to gain control and reconstitute Atsumitec’s board by the fourth quarter of FY2025. The remaining shares will be acquired through a combination of regulatory processes and a share buyback agreement with Honda Motor, which will retain a 5% stake to facilitate a smooth transition. The final ownership structure is expected to be completed by the first quarter of FY2026.
The strategic rationale for this acquisition lies in Motherson’s goal to enhance its metal and machining capabilities and diversify its customer base, particularly among Japanese Original Equipment Manufacturers (OEMs). Atsumitec’s advanced manufacturing techniques, including heat treatment, carburising, and broaching, complement Motherson’s existing operations in India and Mexico, offering the potential for broader applications across industries.
This acquisition also enables Motherson to enter new product lines, such as chassis and transmission components, and expand its reach into markets like Vietnam, which is emerging as a significant hub for two-wheeler manufacturing. Atsumitec’s longstanding relationships with major Japanese OEMs, including Honda, Toyota, Suzuki, and Mitsubishi, will provide Motherson with opportunities to deepen ties with these manufacturers and explore cross-selling opportunities for its existing product portfolio.