Mumbai: Auto components major Motherson Sumi Systems Ltd (MSSL) said on Wednesday it has successfully completed the acquisition of a majority stake in CIM Tools Private Ltd. Based in Bangalore.

In October last year, MSSL announced the acquisition of a 55 percent stake in CIM Tools Private Limited (CIM), a leading provider of aviation supply chains.

CIM, in turn, owns an 83 percent stake in Aero Treatment Private Ltd (ATPL) and a 49.99 percent stake in Lauak CIM Aerospace, a joint venture with Lauak International, LCA.

ATPL is a vertically integrated unit dedicated to the surface treatment of machined parts.

MMSL said in a statement that the three founders Srikanth GS, Umesh AS and Vishwanath Deshpande will hold the remaining 45% stake in CIM.

“We are delighted that all the paperwork related to the acquisition has been completed, and we are delighted to welcome CIM Tools into the Motherson family. In addition to our continued focus on the automotive business, we are always looking to expand our non-automotive business,” said MSSL. 26 percent to $252 million since the initial announcement in October.

This acquisition marks MSSL's entry into the aerospace industry. It provides businesses with access to a well-established and existing client base. The company said the successful closing of this acquisition is another step forward in Motherson's diversification strategy.

Successful closure of the transaction is mutually beneficial for CIM Tools and Motherson. The statement said CIM Tools' existing capabilities coupled with Motherson's manufacturing expertise and global presence will enable it to offer improved solutions and create additional value to customers.

Also Read: Real Estate Investing for Beginners – 5 Ways to Get Started