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Motherson Sumi Signs Strategic Agreement to Acquire Bombardier’s Electrical Wiring Interconnection Systems Business

The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around USD 10 million approximately. (subject to customary adjustments).

October 20, 2020

Auto component major Motherson Sumi Systems Limited (MSSL), via its Mexican subsidiary, Motherson Rolling Stocks S. de R.L. de C.V. (MRS), 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 México) . MRS is part of the Motherson Rolling Stock Division which designs and manufactures electrical cabinets, power packs and electrical distribution systems for leading rolling stock manufacturers.

MSSL, through PKC Group (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 Limited, UK (MRSS) acquired Bombardier’s UK rolling stock electrical component and systems business in Derby. Now, with the execution of this definitive agreement between MRS and Bombardier, the relationship will expand to Mexico.

The transaction includes the transfer of assets, employees and inventories, on a debt-free and cash-free basis and is valued at around USD 10 million approx. (subject to customary adjustments). The revenue of the said business was USD 25 million for calendar year 2019. The transaction is subject to customary closing events and expected to complete in Q4 FY20-21.

BT Electrical Wiring Interconnection Systems (EWIS) provides world-class harnesses and electrical assembly based on standard solutions. MRS will continue manufacturing the same electrical harnesses product as today at the Huehuetoca site in Mexico with enhanced efficiency in time-to-market, on-time delivery and cost structure. Both companies are now working on the smooth transition of employees and business, to mitigate any potential impacts and expect to close the transaction in Q4 FY20-21.

BT Electrical Wiring Interconnection Systems (EWIS) provides world-class harnesses and electrical assembly based on standard solutions. MRS will continue manufacturing the same electrical harnesses product as today at the Huehuetoca site in Mexico with enhanced efficiency in time-to-market, on-time delivery and cost structure. Both companies are now working on the smooth transition of employees and business, to mitigate any potential impacts and expect to close the transaction in Q4 FY20-21.

“The acquisition of the business will enable us to be a truly global partner to our customers as we get the opportunity to serve them in the North American market”, said Andre Gerstner, President, Rolling Stock Division, PKC Group.

“The global rail market is extremely dynamic and has become increasingly competitive. Bombardier Transportation aims to enhance its adaptability and agility to changing market conditions, in order to continue to increase its competitiveness and improve its global footprint. This divestiture is in alignment with our global transformation strategy of reducing the activities to our core- and integrating competencies”, said Jim Vounassis, Chief Operating Officer, Bombardier Transportation.

“The transaction is beneficial to both parties since Bombardier has been seeking to establish a long-term supplier partnership for electrical harnesses and assemblies in the Americas region and MRS is an excellent strategic partner for this”, added, Elliot G. Sander, President, Americas Region, Bombardier Transportation.

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