Auto components major Motherson Sumi Systems Ltd Thursday said it will acquire Bombardier's UK rolling stock electrical component and systems business in a transaction valued at 10.87 millions pounds (over Rs 100 crore).
The company's wholly-owned arm Motherson Rolling Stock Systems GB Ltd (MRSS) has signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Ltd to acquire the latter's assets in connection with production and installation of electrical components and systems for applications in the rail industry, Motherson Sumi Systems Ltd (MSSL) said in a statement.
These assets also includes manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby, UK, it added.
"The transaction includes transfer of assets, employees and inventories, on debt free and cash free basis and is valued at GBP 10.87 millions approximately (subject to customary adjustments)," the company said.
The revenue of said business were GBP 36 million (provisional) during calendar year ended December 31, 2018. The transaction is subject to customary closing events and expected to complete in April-June quarter of 2019, it added.
As per the deal, MRSS will enter into a lease agreement for the part of Bombardier's Derby site currently occupied by the business and will continue to operate the business with its current employees, it added.
Through this, MSSL will expand its supply of electricals and wiring systems to Bombardier Transportation to cover UK rolling stock projects.
MSSL through PKC Group, acquired in March, 2017, is engaged with the manufacturing of wiring harnesses for rolling stock, mainly in Europe and North America.
Commenting on the acquisition, MSSL Chairman VC Sehgal said the partnership between PKC Group and Bombardier under the global partnership agreement will help in "continuing to win the confidence of our partners and customers in the rolling stock business".
Bombardier Transportation Rolling Stock Equipment President Bart Vantorre said, "Our long standing relationship with Motherson and their deep expertise in electrical distribution make them the ideal partner for us as we continue to tirelessly serve our UK customers".
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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