WCA November 2014

India

Insight

$71m deal is done for wiring harness company

AUTO component manufacturer Motherson Sumi Systems Ltd (MSSL) has completed the transaction to acquire Stoneridge Inc’s wiring harness business. The company said in a statement that, with this acquisition, MSSL now has over 45 plants related to the wiring harness business. “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 and services,” said V C Sehgal, group chairman. MSSL signed an agreement on 27 th May to acquire the wiring harness business through asset purchase at a consideration of $65.7 million, on a no-cash-no-debt basis. The total cash outlay of $71.38 million includes an increase in working capital, cash and bank balances subject to post-closing adjustments. Included in the transaction are six manufacturing facilities located in Portland, Indiana, USA; Chihuahua, Saltillo and Monclova in Mexico; and an engineering and administrative centre located in Warren, Ohio, USA. Motherson Sumi Systems Ltd – India Website : www.motherson.com

❍ MSSL now has more than 45 plants related to the wire harness business

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Wire & Cable ASIA – November/December 2014