Motherson Rolling Stock Systems GB Limited (MRSS), through PKC Group, signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Ltd. 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.
The transaction is subject to customary closing events and expected to be completed between April and June 2019.
MRSS is a wholly owned subsidiary of Motherson Sumi Systems (MSSL) specialized on automotive and transport component manufacturing companies for original equipment manufacturers.
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 (EUR 12.65 million). The revenue of business was £ 36 million (EUR 41.88 milliom) during the calendar year ending December 31, 2018.
“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,” Bart Vantorre, President of Bombardier Transportation Rolling Stock Equipment said.
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. in 2015 and executed a global partnership agreement with Bombardier Transportation GmbH in 2016. With the execution of this definitive agreement between MRSS and BTROS, the relationship will expand to the United Kingdom.
“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,” V. C. Sehgal, Chairman of MSSL said.
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