Pricol to acquire Sundaram Auto Components’ injection moulding business

CHENNAI: Coimbatore-based auto components major Pricol is all set to acquire Sundaram Auto Components Ltd (SACL)’s injection moulding business through its wholly owned subsidiary Pricol Precision Products.
The debt-free acquisition is being made through an all-cash deal for Rs 215.3 crore and is subject to adjustments, if any, as defined in the agreement at the time of closing the deal.
“With this acquisition, Pricol will see a consolidated topline addition of approximately Rs 730 crore combined with SACL’s healthy financial parameters that are value accretive to Pricol,” said the company in a statement.
This acquisition underscores Pricol’s commitment towards advancing its growth in allied business verticals thereby cementing its leadership in the automotive sector, added the statement.
SACL, part of the TVS Motor Company, is a well-recognized player in the automotive component industry. It is known for its expertise in polymer solutions and cutting-edge injection moulding capabilities spread across SACL’s six manufacturing facilities across India.
“This acquisition presents Pricol with an opportunity to scale the injection moulding business into an independent business vertical and leverage SACL’s strength combined with Pricol’s capabilities, thereby paving a way for growth in this vertical,” said the company statement.
“It also further fortifies the opportunities to expand the customer base and product offerings through effectively integrating the synergies of Pricol and SACL,” it added.
Pricol MD Vikram Mohan said: “With this acquisition, our focus will remain on harnessing the combined potential of Pricol and SACL, to become an integrated solution player, driving innovation and delivering sustainable growth. SACL’s expertise and value systems perfectly align with our vision and core values which will enable us to meet the demands of our customers. This acquisition is a significant step towards realizing our commitment to a sustainable and transformative growth.”
K Gopala Desikan, group CFO of TVS Motor Company, said, “SACL has played a vital role in the TVS group for many years, establishing a significant presence in the Indian automotive component industry. As market dynamics evolve, and we allocate capital more efficiently in accordance with our strategic plans, we are delighted that Pricol, our trusted long-term supplier partner, is taking over the business. We are confident that they will uphold the same values and ethos, ensuring a smooth transition and continued growth.”