Auto component maker Samvardhana Motherson International Ltd (SAMIL) on Friday, July 7, said it will acquire a 100 percent stake in Rollon Hydraulics Private Ltd for Rs 103 crore.

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"Samvardhana Motherson International has entered into an agreement to acquire a 100% stake in Rollon Hydraulics Private Ltd," the company said in an exchange filing.

Rollon is engaged in manufacturing, assembly, and supply of high precision turned parts, spools, and other machined components with critical engineering applications for the agriculture and off-highway segment from its two facilities based out of Bengaluru (India), the company said.

The target business will be housed under the precision metals and modules division, which is a part of the emerging businesses division of SAMIL. The company reported revenues of Rs 60 crore for FY23, with healthy profitability.

The transaction is expected to be closed in the second quarter of FY2023-24, the company added.

It will also provide Motherson access to a pedigreed customer base across the off-highway industry along with specialised machining, plating, surface treatment, and sub-assembly capabilities. Motherson is a leading supplier to the automotive and non-automotive industries.

Its manufacturing facilities across India and Mexico for precision machining are equipped with state-of-the-art CNC machines and highly customised special-purpose machines, supported by surface treatment and metrological measuring facilities.

The company has specialised technology and expertise for precision machining parts with capabilities like turning, drilling, grinding, milling tools and machining, etc

Chairman of Motherson Vivek Chaand Sehgal said the company is getting access to a new industry segment of construction and material handling for its precision metal business. “This is our fifth acquisition in India in the past 12 months, reaffirming India’s importance in our future plans,” he said.

Shares of Samvardhana Motherson International Ltd ended at Rs 91.39, down by Rs 0.13, or 0.14 percent on the BSE.

(Edited by : Shoma Bhattacharjee)