Bengaluru : The Board of Directors at SJS Enterprises Limited (BSE: 543387; NSE: SJS) on Friday approved the acquisition of 90.1% stake in Walter Pack Automotive Products India Private Limited (WPI) for a total cash consideration of INR 2,393 Mn.
As per the agreement, out of the 90.1%, SJS will acquire the entire 85.0% stake from Walter Pack Spain and will acquire 5.1% stake from Indian promoter and founder, Mr. Roy Mathew who will continue to own 9.9% stake and will continue to lead the business SJS would pay a total cash consideration of INR 2,393 Mn for 90.1% stake at an LTM EV / EBITDA of ~7x. Total upfront consideration to be paid at closing would be INR 2,298 Mn and balance would be paid over the next 18 months. SJS expects to close the acquisition in 5 – 6 weeks.
Walter Pack Spain currently holds an 85.0% stake in WPI with the remaining 15.0% held by the Indian promoter and founder, Mr. Roy Mathew. Spanish multinational Antolin, which specializes in automotive interior parts, holds a minority stake in Walter Pack Spain.
The signing of the definitive agreements for the transformative acquisition of WPI lays the groundwork for a strategic collaboration with Walter Pack Spain and one of its minority shareholders, Antolin. WPI, a subsidiary of Walter Pack Spain, is a leader in the design and development of high value-added functional decorative parts in the Indian market. The work of Walter Pack’s Color&Trim and R&D departments has made it an international reference in IMD, IML and IME advanced technologies, and especially in IMF, the company’s core business. The agreement between the two makes SJS the leading supplier to the automotive and consumer durables segments in Asia, thanks to WPI’s state-of-the-art facilities in Pune, Maharashtra and Manesar, Haryana, equipped to cater to future growth. WPI had interim revenues of over INR 1,200 Mn and healthy EBITDA margins of around 30% with an attractive RoCE of over 50% for FY23. Over two-thirds of WPI revenues are from the automotive segment (passenger vehicles) and the balance one-third are from consumer durables segment.