Automotive components manufacturer Pricol has signed binding agreements to acquire 100% of the wiping systems business of Ashok Piramal group's PMP Auto Components. The acquisition would be undertaken by Pricol through its wholly owned subsidiaries.
The transaction will be funded by a combination of internal accruals and external debt. The transaction would be EPS accretive to the shareholders of Pricol and the profitability is expected to further improve upon integration of the business with Pricol.
The acquisition will help Pricol diversify its product offerings and provide access to manufacturing facilities in Europe and North America, where it currently does not have a footprint, helping it cement its status as a global supplier. Additionally, with this acquisition, Pricol will increase its presence with Passenger vehicles customers diversifying revenue streams and opening up multiple cross selling opportunities.