Motherson Rolling Stock Systems GB Limited (“MRSS”) (a wholly owned subsidiary* of Motherson Sumi Systems (“MSSL”) through PKC Group Ltd.) has signed a definitive agreement with Bombardier Transportation (Rolling Stock) UK Ltd. (“Bombardier”) 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.
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 (subject to customary adjustments). The revenue of said business was £ 36 million (provisional) during the calendar year ending December 31, 2018. The transaction is subject to customary closing events and expected to be completed between April and June 2019.