Motherson unit to buy 50.1% of Rotary Connectors in $520M deal
What's the deal? Samvardhana Motherson Adsys Tech Limited (SMAST)Dealroom has a profile for this one. Try Dealroom →, a subsidiary of Samvardhana Motherson InternationalDealroom has a profile for this one. Try Dealroom →, will acquire a 50.1% stake in Rotary Connectors Private Limited (RCPL)Dealroom has a profile for this one. Try Dealroom → at an enterprise value of US$679.6M — roughly $520 million. The all-cash deal makes RCPL an indirect subsidiary of Motherson, with promoters retaining 49.9%.
What each side does: RCPL manufactures military-grade circular connectors and interconnection solutions for aerospace and defence applications, operating three plants in Bengaluru. Motherson is a global auto components group expanding into new verticals.
What's the endgame? The acquisition supports Motherson's push into its Aerospace and Defence vertical, specifically Electrical Wiring Interconnect Systems (EWIS). RCPL's connector technology gives the group a foothold in a higher-margin segment.
The numbers: RCPL's turnover reached US$16.8M in FY26, up from US$10.2M in FY24 — growth Motherson can build on as it scales the business. The final equity value will be set as enterprise value plus net cash as on March 31, 2026, adjusted for any leakage until closing.
Why now? Motherson's board approved the purchase on September 21, 2026. The transaction is not a related-party deal and requires no governmental or regulatory approvals, with completion expected by Q4 FY27 subject to conditions precedent.
The signal: Motherson is diversifying beyond its automotive roots into defence and aerospace, where demand for specialised interconnect systems is climbing. Retaining the promoters' 49.9% stake keeps existing management involved as the group integrates the technology.
Image credit: Generated with Gemini
