On 27 March 2023, Samvardhana Motherson had informed that SMP Automotive Systems Alabama Inc., USA had submitted a bid for purchase of asset of Bolta US Ltd., USA. Bolta US had filed a voluntary petition for relief under chapter 11 of title 11 of the United States Code.

SMP Alabama is an indirect wholly owned subsidiary of Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), whereas, SMRP BV is a material wholly owned subsidiary of Samvardhana Motherson International.

The United States Bankruptcy Court, Northern District of Alabama, Western Division vide its order dated 24 March 2023 has pronounced selection of bid submitted SMP Alabama and to serve it as the stalking horse under US Bankruptcy Code.

On April 10, Samvardhana Motherson had said that the court vide an order dated 07 April 2023 has authorized the sale of substantially all the assets of Bolta US, free and clear of lien, to SMP Alabama.

Bolta US is engaged in the manufacturing and sale of chrome plated exterior and interior polymer components for automotive applications. It is the only approved chrome part supplier to a leading German OEM in the USA, customer consists of German OEMs and other Tier-1 suppliers. The company's turnover for the CY 2022 is estimated to be approximately $58.8 million.

Offering details of the said transaction, Motherson announced that SMP Alabama has purchased approximately $35.7 million of fixed assets (including $31.8 million of tangible assets and $3.9 million of intangible assets) and approximately $4.7 million of Inventory for $16.002 million.

These asset acquisition enables us to vertically integrate our SMP Alabama operations and foray into manufacturing and sales of chrome plated polymer parts. This will also be strengthening our position in the automotive decorative parts market in the US region.

SMP has bought this asset on behest of the customers and believe that with focused efforts and continued support from our customers we will drive significant efficiencies and envisage to turn around the Bolta Assets in the first year itself,” Samvardhana Motherson said in a statement.

Samvardhana Motherson International (SAMIL) [formerly Motherson Sumi Systems] is one of the world's leading specialised automotive component manufacturing companies for OEMs. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. SAMIL is among the top 25 automotive component suppliers globally.

On consolidated basis, the company's net profit from continuing operations soared 121.61% to Rs 500.73 crore in Q3 FY23 as against Rs 225.95 crore in Q3 FY22. Revenue from operations rose 25% year on year (YoY) to Rs 20,226 crore in the quarter ended 31 December 2022.

The scrip rose 0.29% to currently trade at Rs 69.07 on the BSE.

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