Gabriel India Limited (GIL) has entered into an Asset Purchase Agreement (APA) with Marelli Motherson Auto Suspension Parts Private Limited (MMAS), Marelli Europe S.p.A., and Samvardhana Motherson International Limited. The agreement involves the acquisition of fixed assets and inventory from MMAS, subject to certain conditions precedent.
The deal is contingent on GIL signing agreements with Marelli Suspension Systems Italy S.p.A. (Marelli Italy) for a license to manufacture, assemble, sell, and market specific suspension products in India, along with a technical assistance agreement.
The transaction, approved by GIL’s Board of Directors on January 24, 2025, aims to bolster the company’s presence in the suspension segment by leveraging advanced technology from Marelli Italy.
Key Details of the Acquisition:
- Seller: MMAS, a 50:50 joint venture between Marelli Europe S.p.A. and Samvardhana Motherson International Limited (SAMIL), specializing in shock absorbers, strut assemblies, gas lifters, dampers, and door balancers for passenger and commercial vehicles.
- Revenue from Operations (FY 2023-24): ₹ 2,603 million
- Transaction Structure: Asset sale including fixed assets, inventory, employee transition, and business contracts
- Consideration: Approximately ₹ 600 million, subject to closing adjustments
- Industry: Automobile component sector
- Regulatory Approvals: No governmental or regulatory approvals required; operational licenses will be obtained as needed
- Expected Completion: Q1 FY 2025-26, subject to satisfaction of conditions precedent
Strategic Impact:
The acquisition will enhance GIL’s market share in the suspension business while forging a strong technology partnership. By integrating Marelli Italy’s technical expertise, Gabriel India aims to drive innovation and expand its product portfolio.