Auto component manufacturer Motherson Sumi Systems Ltd (MSSL) has completed the acquisition of Stoneridge Inc’s wiring harness business on receipt of regulatory approvals.
With this acquisition, MSSL now has over 45 plants related to the wiring harness business, the company said in a statement issued on Saturday.
“The business has strong synergies with MSSL’s existing business, products, customer segments and operations. Our endeavour would be to add a lot of value in the customer experience, products offered & services,” said V.C. Sehgal, Group Chairman.
On May 27, MSSL had signed an agreement to acquire the wiring harness business through asset purchase at a consideration of $65.7 million on a no-cash-no-debt basis. The total cash outlay of $71.38 million includes an increase in working capital and cash and bank balances subject to post-closing adjustments.
Included in the transaction are six manufacturing facilities located in Portland, Indiana (the US); Chihuahua, Mexico; Saltillo, Mexico; and Monclova, Mexico; and an engineering and administrative centre located in Warren, Ohio (USA).