New Delhi, Oct 20 (IANS) Motherson Sumi Systems Ltd (MSSL), through its Mexican subsidiary, has signed an asset sale and purchase agreement to acquire the activities of Electrical Wiring Interconnection Systems (EWIS) performed at Bombardier Transportation’s manufacturing site in Huehuetoca, Mexico (BT Ensambles Mexico).
“The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around $10 million approx (subject to customary adjustments),” Motherson Sumi said in a statement.
Motherson Sumi, through PKC Group, which it had acquired in March 2017, is engaged in the manufacturing of wiring harnesses for rolling stock, mainly in Europe and the Americas region.
In 2019, the company, through its subsidiary Motherson Rolling Stock Systems GB Ltd, UK (MRSS), acquired Bombardier’s UK rolling stock electrical component and systems business in Derby.
In a statement, Motherson Sumi said that with the execution of the definitive agreement between its subsidiary MRS and Bombardier, the relationship will expand to Mexico.
Chairman Vivek Chaand Sehgal said: “We are further strengthening the relationship with Bombardier under the global partnership agreement and our collective strength will position us as a preferred solutions provider to our customers in the rolling stock business.”
Jim Vounassis, Chief Operating Officer, Bombardier Transportation, said: “This divestiture is in alignment with our global transformation strategy of reducing the activities to our core- and integrating competencies.”