MSSL, through its step down subsidiary Samvardhana Motherson Automotive Systems Group B.V. (SMRP BV), announced the proposed acquisition of Reydel Automotive Group (Reydel), a privately held portfolio company of Cerberus Capital Management, L.P. (Cerberus) for a purchase price of $201mn. In our view, this deal helps MSSL move a step forward towards achieving its vision 2020 revenue target of $18bn, further scale its interiors business and opens up new markets. Prima facie, the transaction valuation of 2x EV/EBITDA looks attractive for a company with 25% RoCE, net cash and positive free cash generation. Since our previous update, the...