Suprajit Completes Second Tranche of SCS Acquisition

Suprajit has successfully signed Asset Purchase Agreements for the second tranche of the SCS acquisition, covering assets and certain liabilities of SCS China (Stahlschmidt Zhejiang Automotive Co., Ltd.) and SCS Canada (Stahlschmidt Ltd.). This follows the press release (June 9, 2024) and subsequent close of Tranche 1 (July 16, 2024).

The acquisition will be executed through Suprajit USA Inc.'s subsidiaries-Suprajit Canada Limited and Suprajit (Jiaxing) Automotive Systems Company Limited-to acquire assets and businesses in Canada and China respectively. SCS Canada and China serve marquee global OEMs and Tier-1 customers in North America and China.

This tranche brings Suprajit €15 million in annual revenue under the same valuation disclosed in the Press Release dated June 9, 2024.

The deal is expected to close simultaneously on April 1st 2025, subject to certain closing conditions.

Ajith Rai, Founder and Chairman of Suprajit, said - "This acquisition completes Suprajit's global production footprint and strengthens our China manufacturing base."

N.S. Mohan, Managing Director and Group CEO, said - "The close product and people synergies will make this a great long-term asset for Suprajit. SCS Canadas majority customer, will be a new complimentary addition to our client list."

Akhilesh Rai, Director and Chief Strategy Officer, said - "SCS provides a logistics and specialised manufacturing location in the North of USA, at the doorstep of Detroit. The China plant is close to our current operations to leverage synergies."

Jim Ryan, President, Suprajit USA, said - "SCS will have a new life with the insolvency behind them, a stabilised supply chain, and customers with renewed peace of mind. With the complex situation globally, our customers are excited with the suite of options Suprajit can now provide."

Grant Thornton Bharat LLP, India are the sole financial advisors and Oppenhoff & Partner, Germany, along with their Canada and China Associates are the Legal advisors to Suprajit for this transaction.

Shares of Suprajit Engineering Limited was last trading in BSE at Rs. 375.65 as compared to the previous close of Rs. 380.70. The total number of shares traded during the day was 5556 in over 300 trades.

The stock hit an intraday high of Rs. 386.90 and intraday low of 374.90. The net turnover during the day was Rs. 2099482.00.

Source : Equity Bulls

Keywords

SuprajitEngineering INE399C01030 Acquisition SecondTranche SCS