SPR Auto Technologies (SHRIPISTON) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of TGPEL Precision Engineering Limited enables diversification into non-ICE components and sectors beyond automotive, including electrical, consumer goods, and medical.

• TGPEL's advanced capabilities in high-precision injection molding align with the acquirer's strategy to strengthen its position in lightweighting and high-tech manufacturing.

• The deal supports the long-term goal of consolidating leadership in the automotive sector while expanding into adjacent markets.

Financial terms and conditions

• SPR Engenious Limited will acquire 100% of TGPEL at an enterprise value of INR 2,200 million on a debt-free, cash-free basis, with adjustments for debt and debt-like items at closing.

• The acquisition involves purchasing shares from five investors, including Asahi India Glass Limited (30%), Padmini VNA Mechatronics Limited (30%), and three private investors (40%).

• Transaction expected to close by December 31, 2024, subject to completion of conditions precedent.

Synergies and expected cost savings

• Significant synergies anticipated from combining customer reach and product portfolios of TGPEL and Takahata, with minimal product overlap.

• Enhanced ability to serve OEMs and tier-one suppliers, leveraging existing relationships to drive new business.

• Integration expected to be EBITDA accretive from day one, supporting margin expansion.