US/Mexico – India-based Motherson Sumi Systems (MSSL) has signed an agreement to acquire six manufacturing facilities in Portland, Indiana, and Chihuahua, Saltillo, and Monclava in Mexico; the company will also gain an engineering and administrative centre in Warren, Ohio. The $65.7m deal is subject to regulatory approvals but expected to be completed by the third quarter of 2014.
Stoneridge’s wiring harness business has a 48-year history of supplying commercial vehicles (CVs), agricultural equipment, material handling equipment and off-highway vehicle segments. The company has a turnover of around $300m.
MSSL says it has “strong synergies” with its proposed purchase in terms of customer segments, products and global operations. The acquisition is intended to strengthen MSSL’s presence in North America, where it has recently established wiring harness operations.
In turn, the acquired business would benefit from MSSL’s expertise in the area of wire harnesses, wires, wiring harness components including connectors, terminals, protectors, fuse and relay boxes and junction boxes; plus in-house capabilities for process engineering, injection moulding tool manufacturing, polymer processing and IT solutions.
Vivek Sehgal, chairman of Samvardhana Motherson Group, commented that through this acquisition MSSL will gain “one of the most experienced wiring harness manufacturing operations in the region”. He added that the company envisages North America as “a key contributor to our Vision 2020”.