Sumi Systems Limited (MSSL), via its Mexican subsidiary, Motherson Rolling
Stocks S. de R.L. de C.V. (MRS), has signed an asset sale and purchase
agreement to acquire the activities of Electrical Wiring Interconnection
Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in
Huehuetoca, Mexico (BT Ensambles México) .
is part of the Motherson Rolling Stock Division which designs and manufactures
electrical cabinets, power packs and electrical distribution systems for
leading rolling stock manufacturers. MSSL, through PKC Group (acquired in March
2017), is engaged in the manufacturing of wiring harnesses for rolling stock,
mainly in Europe and the Americas region.
In 2019, the company through its subsidiary Motherson Rolling Stock
Systems GB Limited, UK (MRSS) acquired Bombardier’s UK rolling stock electrical
component and systems business in Derby. Now, with the execution of this
definitive agreement between MRS and Bombardier, the relationship will expand
transaction includes the transfer of assets, employees and inventories, on a debt-free
and cash-free basis and is valued at around US $ 10 million approx. (subject to
customary adjustments). The revenue of the said business was US $ 25 million
for calendar year 2019. The transaction is subject to customary closing events
and expected to complete in Q4 FY20-21.
Electrical Wiring Interconnection Systems (EWIS) provides world-class harnesses
and electrical assembly based on standard solutions. MRS will continue
manufacturing the same electrical harnesses product as today at the Huehuetoca
site in Mexico with enhanced efficiency in time-to-market, on-time delivery and
cost structure. Both companies are now working on the smooth transition of
employees and business, to mitigate any potential impacts and expect to close
the transaction in Q4 FY20-21.
Vivek Chaand Sehgal, Chairman, MSSL said, “Our
focus is always on adding value to our customers' supply chain and catering to
their requirements. This is another step forward in that direction. We are
further strengthening the relationship with Bombardier under the global
partnership agreement and our collective strength will position us as a
preferred solutions provider to our customers in the rolling stock business.”
acquisition of the business will enable us to be a truly global partner to our
customers as we get the opportunity to serve them in the North American
market”, said Andre Gerstner, President, Rolling Stock Division, PKC Group.
global rail market is extremely dynamic and has become increasingly
competitive. Bombardier Transportation aims to enhance its adaptability and
agility to changing market conditions, in order to continue to increase its
competitiveness and improve its global footprint. This divestiture is in
alignment with our global transformation strategy of reducing the activities to
our core- and integrating competencies”, said Jim Vounassis, Chief Operating
Officer, Bombardier Transportation.
transaction is beneficial to both parties since Bombardier has been seeking to
establish a long-term supplier partnership for electrical harnesses and
assemblies in the Americas region and
MRS is an excellent strategic partner for this”, added, Elliot G. Sander,
President, Americas Region, Bombardier Transportation.
Source: Motherson Sumi Systems Limited
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