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Motherson Sumi buys Bombardier’s electrical harnesses unit in Mexico for $ 10 mn
Industry News- Oct 22,20
Bombardier Transportation’s Electrical Wiring Interconnection Systems (EWIS) provides world-class harnesses and electrical assembly based on standard solutions. MRS will continue manufacturing the electrical harnesses product at the Huehuetoca site in Mexico.
Noida
Motherson Sumi Systems Limited (MSSL), through its Mexican subsidiary Motherson Rolling Stocks S. de R.L. de C.V. (MRS), has acquired the activities of Electrical Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico (BT Ensambles México) for $ 10 million. MRS is part of the Motherson Rolling Stock Division that designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock manufacturers.
MSSL, through PKC Group (acquired in March 2017), is engaged in the manufacturing of wiring harnesses for rolling stock, mainly in Europe and the Americas region. In 2019, the company through its subsidiary Motherson Rolling Stock Systems GB Limited, UK (MRSS) acquired Bombardier’s UK rolling stock electrical component and systems business in Derby. Now, with the execution of this definitive agreement between MRS and Bombardier, the relationship will expand to Mexico.
The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around $ 10 million approximately (subject to customary adjustments). The revenue of the said business was $ 25 million for calendar year 2019. The transaction is subject to customary closing events and expected to complete in Q4 FY20-21.
BT Electrical Wiring Interconnection Systems (EWIS) provides world-class harnesses and electrical assembly based on standard solutions. MRS will continue manufacturing the same electrical harnesses product as today at the Huehuetoca site in Mexico with enhanced efficiency in time-to-market, on-time delivery and cost structure. Both companies are now working on the smooth transition of employees and business, to mitigate any potential impacts and expect to close the transaction in Q4 FY20-21.
Vivek Chaand Sehgal, Chairman, MSSL said, “Our focus is always on adding value to our customers' supply chain and catering to their requirements. This is another step forward in that direction. We are further strengthening the relationship with Bombardier under the global partnership agreement and our collective strength will position us as a preferred solutions provider to our customers in the rolling stock business.â€Â
Andre Gerstner, President, Rolling Stock Division, PKC Group, said, “The acquisition of the business will enable us to be a truly global partner to our customers as we get the opportunity to serve them in the North American market.â€Â
Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services.
“The global rail market is extremely dynamic and has become increasingly competitive. Bombardier Transportation aims to enhance its adaptability and agility to changing market conditions, in order to continue to increase its competitiveness and improve its global footprint. This divestiture is in alignment with our global transformation strategy of reducing the activities to our core- and integrating competencies,†said Jim Vounassis, Chief Operating Officer, Bombardier Transportation.
“The transaction is beneficial to both parties since Bombardier has been seeking to establish a long-term supplier partnership for electrical harnesses and assemblies in the Americas region and MRS is an excellent strategic partner for thisâ€Â, added, Elliot G Sander, President, Americas Region, Bombardier Transportation.
Motherson Sumi Systems Limited (MSSL) - one of the world’s leading specialised auto component manufacturing companies for OEMs - was established in 1986 as a joint venture with Sumitomo Wiring Systems. With a diverse global customer base of nearly all leading automobile manufacturers globally, the company has a presence in 41 countries across five continents. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of India by Forbes magazine. MSSL is the flagship company of the Motherson Group, ranked 22nd among global automotive suppliers by Automotive News.
Motherson Sumi Systems
Rolling Stock
Bombardier Transportation
Motherson Rolling Stocks
Vivek Chaand Sehgal
auto component
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