Pricol Limited on Monday announced the acquisition of Sundaram Auto Components (SACL)’s Injection Moulding business through Pricol Precision Products Private Limited (a wholly owned subsidiary of Pricol Limited). With this acquisition, it said, Pricol will see a consolidated topline addition of approximately Rs 730 crore combined with SACL’s financial parameters that are value accretive to Pricol. 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, the company said in a regulatory filing.
The acquisition underscores Pricol’s commitment towards advancing its growth in allied business verticals thereby cementing its leadership in the automotive sector. SACL is a part of the TVS Motor Company. The 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.
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Vikram Mohan, Managing Director of Pricol Limited, said, “I express immense pride in welcoming the talented team at SACL into the Pricol family. 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 sustainable and transformative growth.”
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K Gopala Desikan, Group CFO, TVS Motor Company, said, “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.”
“With the acquisition of SACL’s injection moulding business,
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