Motherson Sumi Systems (MSSL), via its Mexican subsidiary, has signed an agreement to acquire the activities of electrical wiring interconnection systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico.
The transaction includes the transfer of assets, employees, and inventories, on a debt-free and cash-free basis and is valued at around $10 million (subject to customary adjustments). The site manufactures harnesses and electrical assembly based on standard solutions.
The acquisition is done through Motherson Rolling Stocks S. de R.L. de C.V. (MRS), the Mexican subsidiary of MSSL. MRS 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.
Now, with the execution of this definitive agreement between MRS and Bombardier, the relationship will expand to Mexico.
The revenue of the said business was $25 million for calendar year 2019. The transaction is expected to be completed in Q4 FY21.
“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,” Vivek Chaand Sehgal, Chairman, MSSL, said in a statement.