M&A Advisory
K&L Gates
Full Credential Description
Samvardhana Motherson International Limited (Motherson), an auto components manufacturer, faced the challenge of expanding its market presence and capabilities through strategic acquisitions. The company sought to acquire a significant stake in Atsumitec Co., Ltd, a Japanese automotive parts manufacturer specializing in metal and machining, particularly in chassis and transmission parts. Atsumitec operates nine facilities across various countries, including China, Japan, and the United States, which presented an opportunity for Motherson to enhance its operational footprint and product offerings. K&L Gates provided a tailored solution by advising Motherson on the acquisition process, which involved a complex series of transactions. Motherson planned to purchase at least 48.02% of Atsumitec’s shares from existing shareholders, with the potential for a squeeze-out or stock consolidation if necessary. The final phase of the acquisition included a share repurchase from Honda Motors Co., establishing a strategic partnership with a 95:5 ownership structure between Motherson and Honda. This strategic move was designed to bolster Motherson's competitive edge in the automotive sector. The expected completion of the transactions in early 2025, pending regulatory approval from Japanese merger control authorities, signifies a significant milestone for Motherson. The deal team, led by corporate partners from K&L Gates, emphasized the importance of their integrated, multidisciplinary approach, which facilitated the successful of the complexities involved in this acquisition. This transaction not only represents a critical growth opportunity for Motherson but also underscores K&L Gates' capability in handling intricate cross-border deals in the automotive industry.