- Transaction is another step in Bombardier’s Transformation Programme
- Acquisition extends existing global relationship between Bombardier and Motherson Sumi Systems Ltd.
BERLIN, Feb. 28, 2019 (GLOBE NEWSWIRE) -- Motherson Rolling Stock Systems GB Limited (“MRSS”) (a wholly owned subsidiary* of Motherson Sumi Systems (“MSSL”) through PKC Group Ltd.) has signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Ltd. (“Bombardier”) to acquire Bombardier’s assets in connection with the production and installation of electrical components and systems for applications in the rail industry, comprising among others the manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby, UK.
MRSS will enter into a lease agreement for the part of Bombardier’s Derby site currently occupied by the business and will continue to operate the business with its current employees. Through this transaction, MSSL will expand its supply of electricals and wiring systems to Bombardier Transportation, to cover UK rolling stock projects. The transaction includes transfer of assets, employee and inventories, on a debt-free and cash-free basis and is valued at approximately £ 10.87 million (subject to customary adjustments). The revenue of said business was £ 36 million (provisional) during the calendar year ending December 31, 2018. The transaction is subject to customary closing events and expected to be completed between April and June 2019.
MSSL, through PKC Group (acquired in March, 2017), is engaged with the manufacturing of wiring harnesses for rolling stock, mainly in Europe and North America. PKC Group entered the rolling stock business by acquiring Kabel – Technik – Polska Sp. z o.o. (“KTP”) in 2015 and executed a global partnership agreement with Bombardier Transportation GmbH in 2016. Now, with the execution of this definitive agreement between MRSS and BTROS, the relationship will expand to the United Kingdom.
Mr. V. C. Sehgal, Chairman, MSSL said, “I would like to congratulate the team for enhancing the partnership between PKC and Bombardier under the global partnership agreement, and for continuing to win the confidence of our partners and customers in the rolling stock business.”
Mr. Bart Vantorre, President of Bombardier Transportation Rolling Stock Equipment said, “This milestone is testament to the progress we continue to make on the Bombardier Transportation transformation agenda. Our long-standing relationship with Motherson and their deep expertise in electrical distribution make them the ideal partner for us as we continue to tirelessly serve our UK customers.”
Mr. André Gerstner, President, Rolling Stock Business, PKC Group said, “This is a great opportunity to expand our global partnership with Bombardier Transportation, strengthen our market position and our customer serving footprint. It is in line with our sustainable growth strategy through customer, geographical and product diversification. We are excited to add a new home for MRSS in the UK and look forward to welcoming the new team.”
About Motherson Sumi Systems Limited
Motherson Sumi Systems Limited (MSSL) is one of the world’s leading, specialized automotive and transportation component manufacturing companies for OEMs. MSSL was established in 1986 as a joint venture with Sumitomo Wiring Systems in India and was listed in year 1993 on the BSE (Scrip code: 517334) and NSE (Symbol: MOTHERSUMI) (CIN - L34300MH1986PLC284510). MSSL is a focused, dynamic and progressive company providing customers with innovative and value-added products, services and solutions. With a diverse global customer base of nearly all leading automobile and transportation OEMs globally, the Company has a presence in 41 countries. MSSL is currently the largest auto ancillary in India and among the Fab 50 companies of Asia by Forbes magazine.
MSSL is the flagship company of the 11.5 billion USD Samvardhana Motherson Group (SMG). The Group has over 270 facilities across 41 countries and employs over 135,000 professionals worldwide. The Group is ranked 23rd among global automotive suppliers by Automotive News. Group’s Vision is “To be a Globally Preferred Solutions Provider.”
About Bombardier Transportation
Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 40,650 people and its products and services operate in over 60 countries.
About Bombardier
With over 68,000 employees across four business segments, Bombardier is a global leader in the transportation industry, creating innovative and game-changing planes and trains. Our products and services provide world-class transportation experiences that set new standards in passenger comfort, energy efficiency, reliability and safety.
Headquartered in Montreal, Canada, Bombardier has production and engineering sites in 28 countries across the segments of Transportation, Business Aircraft, Commercial Aircraft and Aerostructures and Engineering Services. Bombardier shares are traded on the Toronto Stock Exchange (BBD). In the fiscal year ended December 31, 2018, Bombardier posted revenues of $16.2 billion US. The company is recognized on the 2019 Global 100 Most Sustainable Corporations in the World Index. News and information are available at bombardier.com or follow us on Twitter @Bombardier.
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