Motherson Sumi to buy wiring biz of US-based firm for $65.7m

In one of its biggest acquisitions till date, auto component maker Motherson Sumi Systems

RELATED ARTICLES

will acquire US-based Stoneridge Inc's wiring harness business for a total consideration of $65.7 million (around Rs 385 crore).

"The company has signed an agreement to acquire the Wiring harness business of Stoneridge Inc through asset purchase at transaction value of $65.7 million," Motherson Sumi Systems Ltd (MSSL) said in a statement today.

The transaction includes six manufacturing facilities located in Portland, Indiana; Chihuahua, Mexico; Saltillo Mexico and Monclova, Mexico; as well as an engineering and administrative centre located in Warren, Ohio, it added.

"With this acquisition, MSSL gets one of the most experienced wiring harness manufacturing operations in the region which would increase our customer reach, and most importantly add very talented team members who can help MSSL to service the customers in these geographies," Samvardhana Motherson Group Chairman Vivek Chaand Sehgal said.

Being done through a wholly owned subsidiary, the acquisition with base revenues of approximately USD 300 million would provide the company a strong launch pad for its 2020 targets, he added.

This acquisition is expected to close in the third quarter of 2014, subject to customary closing conditions. Stoneridge Inc's wiring harness business has a history of 48 years and is a well-established name in the markets it serves.

It supplies principally to the commercial vehicles, agricultural equipment, material handling equipment and off-highway vehicle segments.

MSSL, started as a wiring harness company in 1986. With this acquisition, it can service the customers in these regions as well as globally, the company said.

"The acquired business would now have access to expertise of MSSL in the areas of wire harnesses, wires, wiring harness components including connectors, terminals, protectors, fuse and relay boxes and junction boxes," it added.

This is by far the largest acquisition by MSSL for the core business of wiring harnesses, it added.

Citigroup Global Markets Inc acted as the exclusive financial advisor for the transaction to MSSL.

MSSL shares were trading at Rs 288 apiece on the BSE, up 0.88 per cent from its previous close.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.
Image CAPTCHA
Copy the characters (respecting upper/lower case) from the image.

EDITORIAL OF THE DAY

  • The govt needs to spend its cash without being frugal or wasteful

    Increased government spending can provide a temporary stimulus to demand and output. This is Economics 101.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Roopen Roy

Livability as a competitive advantage

Some CEOs and policymakers argue forcefully that distance is of ...

Rajgopal Nidamboor

The submarine element of your mind

We are all aware of the power of our will ...

Gautam Gupta

Retailers have it tough, thanks to e-commerce

For the past few months our focus has been on ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture