VISIOCORP
Acquisition makes Sumi Motherson new global automotive player / UK mirror maker out of cash
Automotive component supplier Motherson Sumi Systems (MSSL, Noida / India; www.motherson.com) has completed the acquisition of the world’s largest manufacturer of rear view mirrors, Visiocorp Group (Portchester / UK; www.visiocorp.com). Plans for the takeover of the production company, which has been carved out of the corporate shell, Visiocorp plc, now in pre-packaged administration, became public in January 2009 – see Plasteurope.com of 12.01.2009.
A special purpose vehicle, Samvardhana Motherson Visiocorp Solutions Limted (SMVSL), has acquired all Visiocorp group companies for around EUR 25m in cash, plus 5% equity in SMVSL. The 5% stake has face value of EUR 1.5m. The mirror producer’s EUR 300m in debt is not part of the transaction and is likely to remain with the company in administration. In the turbulent two years since the former Schefenacker was acquired by hedge funds, Visiocorp is thought to have run out of cash at the end of November 2008 and since has been struggling for survival.
With the takeover, the Indian group in one fell swoop has become a major automotive supplier. For a number of years it had tried through partnerships to gain a solid foothold in Europe and elsewhere. Visiocorp and its new Indian owner have had a manufacturing joint venture for automotive mirrors since 1996. The new global player will have a wide range of clients, including General Motors, Hyundai, Ford, Volkswagen, Renault and BMW, and a massive global spread with 80 manufacturing facilities in 20 countries.
Visiocorp reported sales of around EUR 660m in 2008, and its acquisition has nearly doubled turnover at MSSL’s parent company, Sumi Motherson Group, to USD 1.6 bn (EUR 1.27 bn). The path towards integrating the two automotive supply businesses and achieving annual sales of USD 1bn by 2010 may not be smooth. The Indian group hopes to leverage considerable synergies, as its existing businesses can supplement some Visiocorp functions – in design and injection moulding, for example. The closure of at least one European plant appears inevitable. Speculation focuses on unprofitable German and Hungarian units. Visiocorp is also active in France and Spain as well as the UK.
A special purpose vehicle, Samvardhana Motherson Visiocorp Solutions Limted (SMVSL), has acquired all Visiocorp group companies for around EUR 25m in cash, plus 5% equity in SMVSL. The 5% stake has face value of EUR 1.5m. The mirror producer’s EUR 300m in debt is not part of the transaction and is likely to remain with the company in administration. In the turbulent two years since the former Schefenacker was acquired by hedge funds, Visiocorp is thought to have run out of cash at the end of November 2008 and since has been struggling for survival.
With the takeover, the Indian group in one fell swoop has become a major automotive supplier. For a number of years it had tried through partnerships to gain a solid foothold in Europe and elsewhere. Visiocorp and its new Indian owner have had a manufacturing joint venture for automotive mirrors since 1996. The new global player will have a wide range of clients, including General Motors, Hyundai, Ford, Volkswagen, Renault and BMW, and a massive global spread with 80 manufacturing facilities in 20 countries.
Visiocorp reported sales of around EUR 660m in 2008, and its acquisition has nearly doubled turnover at MSSL’s parent company, Sumi Motherson Group, to USD 1.6 bn (EUR 1.27 bn). The path towards integrating the two automotive supply businesses and achieving annual sales of USD 1bn by 2010 may not be smooth. The Indian group hopes to leverage considerable synergies, as its existing businesses can supplement some Visiocorp functions – in design and injection moulding, for example. The closure of at least one European plant appears inevitable. Speculation focuses on unprofitable German and Hungarian units. Visiocorp is also active in France and Spain as well as the UK.
13.03.2009 Plasteurope.com [213002]
Published on 13.03.2009
German version of this article...