Motherson Sumi to acquire Bombardier Transportation UK
Motherson Sumi's wholly-owned indirect subsidiary, Motherson Rolling Stock Systems GB Limited, UK (MRSS) has signed an agreement to acquire Bombardier’s rolling stock electrical component and systems business in the UK.
The acquisition consists of Bombardier Transportation (Rolling Stock) UK Limited's assets engaged in the production and installation of electrical components and systems for applications in the railways and manufacturing of wiring harnesses, panels and electromechanical assemblies in Derby, UK. MRSS will also enter into a lease agreement for access to Bombardier’s Derby facility and employees. Revenue of the said business was approximately 36 million Sterling pound for the calendar year ended December 31, 2018.
Post-acquisition Motherson Sumi will be able to expand its electricals supplies and wiring systems business with Bombardier Transportation. The deal includes the transfer of assets, inventories and employee on a debt-free and cash-free basis. The deal is valued at around 10.87 millions Sterling pounds. The transaction is expected to close in the April-June quarter of 2019.
On Friday, at 10:43 hours, the stock of Motherson Sumi was trading at Rs. 163.80 per share, up by 1.24 per cent.