Bosch India (BOSCHLTD) M&A announcement summary

Deal rationale and strategic fit

• Acquisition consolidates and expands mobility solutions, integrating safety, braking, and vehicle motion systems to address evolving automotive sector demands in India.

• Enables transition from component sales to platform-level, future-ready solutions, strengthening competitive advantage and market position.

• Aligns with automotive megatrends such as electrification, automation, and personalization, supporting scalable solutions for all vehicle segments.

• Increases content per vehicle and wallet share per OEM customer, positioning the company as a preferred mobility partner.

• Realignment supports long-term value creation and export opportunities.

Financial terms and conditions

• Purchase consideration is up to INR 9,068.70 crores (INR 90,687mn), valuing the target at 10.6x EV/EBITDA FY 2025.

• Funded primarily in cash with a small equity component, including issuance of 2,460 shares at INR 35,200 per share to promoter group entities.

• Pro forma EPS accretion expected at approximately 5% or an increase from INR 683 to INR 720 based on FY 2025 numbers.

• Consolidated revenue from operations to increase by 22% on a pro forma FY 2025 basis.

• Commitment to a transparent dividend distribution of 55-85% of PAT.

Synergies and expected cost savings

• Integration expected to drive accretion in growth and margins, with higher pro forma EBITDA margin (13.9% vs. 12.8%).

• Processes and frameworks already harmonized, so no immediate synergies counted in the business case, but cross-domain synergies and collaboration anticipated post-merger.

• Enhanced cash generation profile enables potential future acquisitions.