Motherson Sumi Systems (MSSL) has acquired Finland-based global automotive supplier, PKC Group for around EUR571m (US$619.6m), in a move which will help the Vivek Chaand Sehgal-led group to expand its footprint in American and European commercial vehicle market segments.
“We are happy to announce we have successfully acquired 93.75% shareholding in PKC Group which has significant market presence in the American and European markets with major growth plans in China,” said Sehgal.
“This is in sync with our declared policy of focusing on these markets to create enhanced value for all our stakeholders including investors.
“MSSL has always believed in both organic and inorganic growth and has seen an average annualised growth of 40% over the last ten years. I see tremendous growth potential ahead and we will continue to work towards becoming a globally preferred solutions provider for the transportation industry.”
A statement from MSSL added: “MSSL will continue to keep its focus on providing full system solutions to its customers globally. With the operational expertise of MSSL and technical know-how of PKC, the company will add more value to its customers and suppliers.
“MSSL’s success in managing its wiring harness business with a focus on training its people, managing multiple plants with high degree of vertical integration from design to modules will help unlock the full potential of PKC.”
This is the 16th acquisition by MSSL since 2002, which now has a turnover of US$5.7bn.
As announced on 19 Jan, 2017, MSSL and PKC entered into a combination agreement pursuant to which MSSL launched a voluntary recommended public tender offer for the acquisition of all the issued and outstanding share capital and voting rights of PKC Group.
The tender offer was launched on 6 February this year.