Another Motherson Sumi Systems Limited (MSSL) acquisition

Motherson Sumi Systems Ltd (MSSL) has acquired Stoneridge Inc’s wiring harness business, which designs and manufactures wiring harness products for commercial, agricultural and off-highway vehicle markets. Commercial vehicle instrument panels too are configured to OEM customer’s specs.

Sona-koyaThe deal was closed in record time upon receipt of necessary regulatory approvals. On 27th May 2014, MSSL signed an agreement to acquire the business through asset purchase at consideration of $ 65.7 million (no cash no debt basis). Total cash outlay of $ 71.38 million includes increase in working capital and cash/bank balances, subject to post-closing adjustments.

The deal encompasses 6 manufacturing facilities in Portland, Indiana (USA); Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico, and an engineering and administrative centre in Warren, Ohio (USA). New manufacturing facilities enable MSSL to service growing customer requirement in the region. MSSL now has over 45 plants related to wiring harness business.

Mr. V.C. Sehgal, Group Chairman, welcomed the wiring harness business team in North America today, and heralds its strong synergies with MSSL’s existing business, products, customer segments and operations. MSSL aspires to add value to customer experience, products offered, and services. Stoneridge’s wiring harness business acquisition reaffirms MSSl’s quest at being a globally preferred solutions provider.