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Motherson Sumi Systems (MSSL), maker of automobile parts, has signed an agreement to buy the wiring harness business of US-based Stoneridge for $65.7 million (Rs 390 crore). The deal includes six manufacturing plants, in Portland, Indiana; Chihuahua, Mexico; Saltillo Mexico and Monclova, Mexico, plus an engineering and administrative centre in Warren, Ohio.
It is expected to close in the third quarter of 2014, subject to customary closing conditions. The acquired business has annual turnover of $300 mn (Rs 1,770 crore), with a history of 48 years. It supplies principally to commercial vehicles, agricultural equipment, material handling equipment and off-highway vehicle segments. Citigroup Global Markets was the exclusive financial advisor to MSSL for the transaction.
MSSL entered the wiring harness business in 1986. Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group, said: “We envisage North America playing a key contributor to our Vision 2020.”
Citigroup Global Markets Inc. acted as the exclusive financial advisor for the transaction to MSSL.
