Motherson Sumi Systems rose 0.47% to Rs 354 at 9:59 IST on BSE after the company said it has successfully closed the deal for acquiring wiring harness business of Stoneridge Inc. in a record time on receipt of necessary regulatory approvals.
The announcement was made on Saturday, 2 August 2014.
Meanwhile, the S&P BSE Sensex was up 91.62 points or 0.36% at 25,572.46.
On BSE, so far 13,000 shares were traded in the counter as against average daily volume of 1.72 lakh shares in the past two weeks.
The stock hit a high of Rs 358 and a low of Rs 354 so far during the day.
As announced previously on 27 May 2014, Motherson Sumi Systems (MSSL) had signed an agreement to acquire the wiring harness business of Stoneridge Inc. through asset purchase at consideration of $65.7 million on no cash no debt basis. The total cash outlay of $71.38 million includes increase in working capital and cash/bank balances subject to post-closing adjustments, MSSL said in a statement.
The addition of new manufacturing facilities would enable MSSL to service the growing requirement of the customers in the region, MSSL said. With this acquisition, MSSL now has over 45 plants related to wiring harness business, it added.
Talking on the development, Mr. V.C. Sehgal, Group Chairman said, "We welcome the entire team of wiring harness business joining us in North America today. The business has strong synergies with MSSL's existing business, products, customer segments and operations. Our endeavour would be to add a lot of value in the customer experience, products offered & services. This acquisition reaffirms our commitment to our customers and reiterates our vision of being a globally preferred solutions provider".
Motherson Sumi Systems' consolidated net profit surged 54.5% to Rs 302.53 crore on 25.6% growth in net sales to Rs 8289.01 crore in Q4 March 2014 over Q4 March 2013. The company will announce its Q1 June 2014 results on 12 August 2014.
Motherson Sumi Systems supplies components, modules and systems to the automotive sector. Its business portfolio encompasses electrical distribution system (EDS), polymer products and complete module solutions. It is the largest supplier of EDS to the Indian automotive industry.
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