US: Motherson Sumi to acquire Stoneridge’s wiring harness business
Motherson Sumi Systems (MSSL) has signed an agreement to acquire the wiring harness business of Stoneridge through asset purchase at transaction value of US$65.7m (debt free and cash free).
This acquisition is expected to close in the third quarter of 2014, subject to customary closing conditions. The acquired business has a turnover of approximately $300m. The transaction includes six manufacturing facilities located in Portland, Indiana; Chihuahua, Mexico; Saltillo Mexico; and Monclova, Mexico; as well as engineering and administrative centre located in Warren, Ohio.
With this acquisition MSSL can service the customers in these regions as well as globally with its presence in other markets. This acquisition further strengthens MSSL presence in North America where it has in recent past, established wiring harness operations.
The acquired business would now access to expertise of MSSL in the areas of wire harnesses, wires, wiring harness components including connectors, terminals, protectors, fuse and relay boxes and also of MSSL's in-house capabilities for processing engineering, injection moulding tool manufacturing, polymer processing, IT solutions etc. for which it provides a global support to all its units. MSSL would further build upon the existing knowledge, technical expertise, and customer relationships that acquired business has in the region.
This is by far the largest acquisition for the core business of wiring harnesses.
"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. We envisage North America playing a key contributor to our vision 2020. Being done through a wholly owned subsidiary, this acquisition with base revenues of approximately $300m would provide us a strong launchpad for our 202 targets. It's a step further in MSSL's philosophy of growing all its product segments and maintaining a well-balanced portfolio," said Vivek Sehgal, chairman, Samvardhan Motherson Group.