A subsidiary of transportation component major Motherson Sumi Systems has acquired assets of Bombardier Transportation (Rolling Stock) UK Ltd for production and installation of electrical components and systems in the rail industry.
This will include manufacturing of wiring harnesses, panel and cabinet build and electro-mechanical assemblies in Derby, Motherson Rolling Stock Systems informed stock exchanges on Friday.
The transaction includes transfer of assets, employee and inventories on debt free and cash free basis and is valued at 10.87 million pounds.
MRSS will enter into a lease agreement for the part of Bombardier's Derby site currently occupied by the business and will continue to operate the business with its current employees. Through this, the parent company Motherson Sumi Systems Limited will expand its supply of electricals and wiring systems to Bombardier Transportation, to cover UK rolling stock projects.
The revenue of said business was 36 million pounds during calendar year ended December 31, 2018. The transaction is subject to customary closing events and expected to complete in April to June quarter of 2019.
Motherson Sumi Systems Limited is one of the world's leading, specialised automotive and transportation component manufacturing companies for OEMs. It is the flagship company of 11.5 billion dollars Samvardhana Motherson Group (SMG) which has over 270 facilities across 41 countries and employs over 135,000 professionals worldwide.
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