UK: Indian automotive and transport component supplier Motherson Sumi Systems Ltd's PKC Group announced on February 28 that it had signed a definitive agreement to acquire Bombardier Transportation’s UK rolling stock electrical component and system production and installation activities.
This includes the manufacturing of wiring harnesses, panels and cabinets and electromechanical assemblies. Motherson Rolling Stock Systems GB Ltd will lease the part of Bombardier’s Derby site which is used for these activities, and the business will continue to operate with the current employees.
The transaction, including the transfer of assets, employee and inventories on a debt-free and cash-free basis, is valued at approximately £10·9m, subject to customary adjustments, and is expected to be completed between April and June 2019. MRSS said the revenue of the business was £36m in 2018.
PKC Group entered the rolling stock business with the acquisition of Kabel–Technik–Polska in 2015, and reached a global partnership agreement with Bombardier Transportation in 2016.
The latest acquisition is a ‘great opportunity to expand our global partnership with Bombardier Transportation, strengthen our market position and our customer serving footprint’, said André Gerstner, President, Rolling Stock Business, at PKC Group. ‘It is in line with our sustainable growth strategy through customer, geographical and product diversification.’
Bart Vantorre, head of Bombardier Transportation’s Rolling Stock Equipment unit, said the deal was ‘testament to the progress we continue to make on the Bombardier Transportation transformation agenda’.