Motherson Sumi acquires Stoneridge Inc’s wiring harness biz

New Delhi-based Motherson Sumi Systems Ltd (MSSL) has signed an agreement to acquire the wiring harness business of Stoneridge Inc. through asset purchase at transaction value of $ 65.7 million (Rs 384 crore). This acquisition is expected to close in the third quarter of 2014, subject to customary closing conditions. The acquired business has a turnover in the region of $300 million (Rs 1,756 crore).

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 at Warren, Ohio. The acquired business has a history of 48 years of wiring harness manufacturing and is a well-established name in the markets it serves. It supplies principally to the commercial vehicles, agricultural equipment, material handling equipment and off-highway vehicle segments.

MSSL hopes to leverage its synergies with the proposed business entity being acquired in terms of customer segments, products and global operations. The acquisition will enable MSSL to cater to clients in these regions as well as globally. MSSL has wiring harness operations in North America. 

“We envisage North America playing a key contributor to our Vision 2020. This acquisition with base revenues of approximately $300 million will provide us with a strong launchpad for our 2020 targets,” said Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group. Sehgal was Autocar Professional’s Man of Year in 2010.

MSSL, ranked 55th in global auto component suppliers has made 10 acquisitions, the first being in wiring harness in 2002, and other being the acquisition of mirror business from Visiocorp (now renamed as Samvardhana Motherson Reflectec) in 2009 and Peguform (renamed Samvardhana Motherson Peguform) in 2011.

"We envisage North America playing a key contributor to our Vision 2020. Being done through a wholly owned subsidiary, this acquisition with base revenues of approximately $300 million would provide us with a strong launchpad for our 2020 targets,” said Vivek Chaand Sehgal, chairman, Samvardhana Motherson Group.