Automotive parts manufacturer Motherson Sumi Systems Ltd (MSSL) based in the New Delhi area has signed a strategic agreement to acquire the electrical wiring interconnection systems (EWIS) business of Bombardier Transportation, the rail equipment division of Bombardier Inc.
In a statement, Noida-based MSSL said it will acquire the Huehuetoca, Mexico-based arm via its local subsidiary, Motherson Rolling Stocks S. de R.L. de C.V. (MRS). This unit is involved in the design and manufacture of electrical cabinets, power packs, and electrical distribution systems for rolling stock manufacturers.
This acquisition involves assets, employees and inventories transfers on a debt- and cash-free basis, at a valuation of $10 million. The acquisition will help MRS enhance the efficiency of its manufacturing processes with respect to factors such as time-to-market, on-time deliveries, and cost structures. “Our focus is always on adding value to our customers’ supply chain and catering to their requirements,” MSSL chairman Vivek Chaand Sehgal said.
The EWIS unit generated $25 million in revenue for the 2019 calendar year, MSSL said. It expects the acquisition to close by the fourth quarter of the 2020-21 financial year, subject to customary conditions.