NEW DELHI: Auto components maker Pricolllll on Thursday said it has signed a binding agreement to acquire 100 percent stake in Ashok Piramal Group’s PMP Auto Components wiper systems business.

The acquisition was made through a wholly owned subsidiary of Limited, which Pricolll acquired this time. The transaction was funded by internal accruals and external debt. The transaction will be accretive to Pricolll shareholders’ earnings per share, and the integration of the business with Pricoll is expected to further improve profitability.

In 2008, PMP acquired the wiper systems business from Magna. The company has manufacturing facilities in the Czech Republic, Mexico and India and supplies wiper motors to global automotive customers, including Volkswagen, Fiat, John Deere, Skoda, Audi and Seat. The company is one of the 20 FY turnover of around 25 Confirmed orders and revenue visibility of over Rs. 45 crore crore.

The acquisition will enable Pricol to diversify its product offerings and provide European and North American products that are currently not available. In addition, the acquisition will expand Pricoll’s reach into the passenger car segment, opening up various cross-selling opportunities.

Pricol is also expected to realize significant synergies in the first few years and further improve the financial performance of the business. The target company can leverage Pricol’s focus as an automotive component supplier and its experience in low-cost production and sourcing to reduce raw material procurement costs and manufacturing costs. Joint research and development is also expected to reduce product development costs.

Pricol Vikram Mohan “This acquisition is closely aligned with our long-term strategy to promote growth and diversify our product offerings.” We believe that wiping systems are a growing product segment that extends well beyond the ongoing market transformation.” Harsh Piramal, General Manager, PMP Auto Components “With manufacturing facilities in the Czech Republic and Mexico, this acquisition is fully aligned with our ongoing plans.” As part of the reallocation of our strategic portfolio, we have decided to acquire businesses by like Pricol, a group that specializes in automobiles “I want to take it to the next level.”

The transaction is subject to customary trading conditions and the parties must comply with standard confidentiality obligations.

BMR Advisors acted as transaction and financial advisor to Pricol. PricewaterhouseCoopers acted as advisor to PMPP shareholders on the transaction.