Motherson Sumi Systems Limited agreed to acquire 55% stake in CIM Tools Private Limited from the promoters of CIM Tools Private Limited for an enterprise value of approximately INR 4 billion.

Motherson Sumi Systems Limited (BSE:517334) agreed to acquire 55% stake in CIM Tools Private Limited from the promoters of CIM Tools Private Limited for an enterprise value of approximately INR 4 billion on October 8, 2021. Enterprise value is subject to adjustments. Final consideration will be determined at the time of closing, based on adjustments.

Consideration will be paid in cash. The three founders, Srikanth GS, Umesh AS and Vishwanath Deshpande, will retain 45% stake in CIM and will continue to drive further growth, in partnership with Motherson Sumi Systems. The deal is subject to receipt of regulatory and other approvals. Karnataka Industrial Area Development Board and Board of Directors of Motherson Sumi Systems approved the deal.

The proposed transaction is expected to be closed within 3 months. Rajiv Khaitan, Aravind Venugopal, Vinay Joy, Kabir Bogra, Smita Jha, Shailendra Bhandare, Sudheer Madamaiah and Ajay Bhargava of Khaitan & Co. advised Motherson on the transaction.