Motherson Sumi Systems Ltd (MSSL) has informed that its board has approved the permission for acquisition of the global rear view mirror business from Visiocorp PLC.

Visicorp is one of the largest players in the rear view mirror business. Its customers include the global carmakers like GM, Ford, Hyundai, Volkswagen, Renault-Nissan, Mercedes Benz, BMW, Audi, Tata-JLR, Maruti Suzuki etc.

The acquisition is being made together with Samvardhana Motherson Finance Ltd (SMFL) through a special purpose vehicle (SPV).

SMFL is an unlisted public limited company controlled by Sehgal family and is the group holding company. The company holds about 24.78% shares of MSSL and is the joint venture partner in other companies of Sumi Motherson Group.

Under the arrangement, Motherson Sumi will hold 51 percent, while Samvardhana will hold the balance stake in SPV. The proposed capital of the SPV is 30 million Euro.

Source quoted that the SPV would acquire various operating companies engaged in the design, manufacture, and assembly of rear view mirrors, operating in Europe, America, Australia and Asia.

The global rear view mirror business of Visicorp, had a revenue in excess of 700 million euros, with a normalized EBITDA of about 48 million euros in 2007.

This acquisition process is expected to be completed by end of February 2009.