New Delhi : In one of its biggest acquisitions till date, auto component maker Motherson Sumi Systems will acquire US-based Stoneridge Inc’s wiring harness business for a total consideration of $65.7 million (around Rs 385 crore).
“The company has signed an agreement to acquire the Wiring harness business of Stoneridge Inc through asset purchase at transaction value of USD 65.7 million,” Motherson Sumi Systems Ltd (MSSL) said in a statement. The transaction includes six manufacturing facilities located in Portland, Indiana; Chihuahua, Mexico; Saltillo Mexico and Monclova, Mexico; as well as an engineering and administrative centre located in Warren, Ohio, it added.
“With this acquisition, MSSL gets one of the most experienced wiring harness manufacturing operations in the region which would increase our customer reach, and most importantly add very talented team members who can help MSSL to service the customers in these geographies,” Samvardhana Motherson Group Chairman Vivek Chaand Sehgal said. Being done through a wholly owned subsidiary, the acquisition with base revenues of approximately USD 300 million would provide the company a strong launch pad for its 2020 targets, he added.