Motherson Sumi to acquire Stoneridge's Wiring Business assets

ABR Staff Writer Published 28 May 2014

India-based auto component manufacturer Motherson Sumi Systems (MSSL) has signed an agreement to acquire the Stoneridge's Wiring Business segment assets for $65.7m.

With the acquisition, which includes six manufacturing facilities in Portland, Chihuahua, Saltillo, and Monclova as well as an engineering and administrative center in Warren, Motherson plans to expand its presence in North America.

Subject to customary closing conditions and regulatory approvals, the transaction is expected to be completed during third quarter of 2014.

Stoneridge president and chief executive officer John Corey said combination of the company's Wiring Business with Motherson will increase the vertical and global integration of the business and provide additional global capabilities to service customers' requirements.

"With the sale of our Wiring Business, we can now increase our focus and resources on our other business segments, which are technology-driven with global applications and offer greater opportunities to provide higher value to our shareholders," Corey added.

Stoneridge is producer of wiring harness and assembled instrument panels used in commercial vehicles, agriculture equipment, material handling equipment and off-highway vehicle segments.

Samvardhana Motherson Group chairman Vivek Chaand Sehgal said being done through a wholly owned subsidiary, this acquisition with base revenues of approximately $300m would provide a strong launchpad for the company's 2020 targets.

"It's a step further in MSSL's philosophy of growing all its product segments and maintaining a well-balanced product portfolio," Sehgal added.

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Motherson Sumi to acquire Stoneridge's Wiring Business assets