Motherson Sumi to Acquire Bombardier’s Mexico Electrical Biz

Motherson Sumi Systems Ltd announced signing of a sale and purchase agreement to acquire the Electrical Wiring Interconnection Systems business of Canadian firm, Bombardier Transportation in Mexico. The acquisition was conducted through Motherson’s Mexican subsidiary Motherson Rolling Stocks S. de R.L. de C.V. (MRS). The acquisition is expected to further strengthen Motherson’s rolling stock component manufacturing business in the railway sector in the American continent. “The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around US $ 10 million approx. (subject to customary adjustments). The revenue of the said business was $ 25 million for calendar year 2019. The transaction is subject to customary closing events and expected to complete in Q4 FY20-21," said the company is statement. In 2019, the Noida based company, acquired the Bombardier’s rolling stock electrical component and systems business in United Kingdom.