Motherson Sumi Announce Acquisition Of Bombardier’s UK Rolling Stock Electrical Component And Systems Business
Motherson Rolling Stock Systems GB Limited, UK (MRSS), (a wholly owned subsidiary of Motherson Sumi Systems Limited (MSSL) through PKC Group Limited), has signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Limited (Bombardier) to acquire Bombardier’s assets in connection with the production and installation of electrical components and systems for applications in the rail industry, comprising among others the manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby, UK.
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. Through this, MSSL will expand its supply of electricals and wiring systems to Bombardier Transportation, to cover the UK rolling stock projects. The transaction includes transfer of assets, employee and inventories, on debt free and cash free basis and is valued at £ 10.87 million approx. (subject to customary adjustments). The revenue of said business were £ 36 million (provisional) during the calendar year ended December 31, 2018. The transaction is subject to customary closing events and expected to complete in the April-June quarter of 2019.
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. PKC Group entered the rolling stock business by acquiring Kabel – Technik – Polska Sp. z o.o. (“KTP”) in 2015 and executed a global partnership agreement with Bombardier Transportation GmbH in 2016. Now, with the execution of this definitive agreement between MRSS and Bombardier, the relationship will expand to the United Kingdom.