Noida, October 21, 2020
Motherson Sumi Systems
Limited (MSSL), one of the world’s leading specialised automotive component
manufacturing companies for OEMs, has acquired the activities of Electrical
Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s
manufacturing site in Huehuetoca, Mexico (BT Ensambles México). The acquisition
was completed through MSSL’s Mexican subsidiary Motherson Rolling Stocks S. de
R.L. de C.V. (MRS), which is part of the Motherson Rolling Stock Division that 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 to 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 approximately (subject to customary
adjustments). The revenue of the said business was $ 25 million for calendar
year 2019. The transaction is subject to customary closing events and expected
to complete in Q4 FY20-21.
BT 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