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 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E-mail ID will not be published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.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture