Pricol announced the proposed acquisition of Sundaram Auto Components (SACL)'s Injection Moulding business through Pricol Precision Products (a wholly owned subsidiary of Pricol). 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. The debt-free acquisition is being made through an all cash deal for an amount of Rs 215.3 crore and is subject to adjustments, if any, as defined in the Agreement at the time of closing the deal.
This acquisition underscores Pricol's commitment towards advancing its growth in allied business verticals thereby cementing its leadership in the automotive sector. SACL, part of the TVS Motor Company, established in 1992, is a well-recognized player in the Automotive Component Industry. Renowned for its expertise in innovative polymer solutions and cutting-edge injection moulding capabilities, SACL's six state-of-the-art manufacturing facilities across India embody operational excellence and sustainable practices. Over the years, the company has built a strong customer base, supported by robust talent and well-established manufacturing ecosystem.
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. It also further fortifies the opportunities to expand the customer base and product offerings through effectively integrating the synergies of Pricol and SACL.