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.
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 $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.