Minda Corporation To Acquire 49% Stake In Flash Electronics For $158 Mln
Indian automotive component manufacturer says the collaboration seeks to create the fastest growing electric vehicle platform in the country
(The Corner Office Journal) -- Minda Corporation Ltd. agreed to acquire a 49% stake in automotive electrical solutions supplier Flash Electronics (India) Private Ltd. for 1,372 crore rupees ($158 million) in cash to strengthen its position in the automotive industry.
The transaction is valued at an enterprise value of 3,100 crore rupees (equity valuation of 2,800 crore rupees), the Indian automotive component manufacturer said in an investor presentation.
Minda said both companies have a diversified, yet synergized, product portfolio and the collaboration seeks to create the fastest growing electric vehicle platform in the country.
One Plus One
Minda, the flagship company of Spark Minda, offers diversified products to its customers and its portfolio encompasses mechatronics, information & connected systems and plastic & interior for auto original equipment manufacturers.
These products cater to two/three wheelers, passenger vehicles, commercial vehicles, off-roaders and after-market.
The New Delhi-based Flash Electronics, founded in 1989, manufactures a wide range of high-performance automotive components, including motors, motor controllers, magnetos, regulators and sensors. The company has eight manufacturing plants across globe and three dedicated research & development centers.
“One plus one will be eleven,” Ashok Minda, chairman and group chief executive officer of Minda, said in a statement.
Minda said the collaboration aims to leverage each other’s strengths and drive future growth by unlocking synergies across products, technology and customers.
Revenue Outlook
Flash Electronics, which has been delivering a CAGR of over 17% during the past years, is likely to achieve revenue of over 1,500 crore rupees in FY25, according to the statement.
The company is expected to deliver EBITDA margin of around 14%, with a steady return on capital employed of over 22%, it said.
The deal, which does not require any regulatory approval, is likely to conclude by 31 January 2025.
Note: $1 = 86.5786 Indian rupees
(Send feedback to editor@cornerofficejournal.com)
