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.
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. (“KTP”) in 2015 and executed a global partnership agreement with Bombardier Transportation GmbH in 2016. Now, with the execution of this definitive agreement between MRSS and BTROS, the relationship will expand to the United Kingdom.
Mr. V. C. Sehgal, Chairman, MSSL said, “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.”
Mr. Bart Vantorre, President of Bombardier Transportation Rolling Stock Equipment said, “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.”
Mr. André Gerstner, President, Rolling Stock Business, PKC Group said, “This is a great opportunity to expand our global partnership with Bombardier Transportation, strengthen our market position and our customer serving footprint. It is in line with our sustainable growth strategy through customer, geographical and product diversification. We are excited to add a new home for MRSS in the UK and look forward to welcoming the new team.”
About Bombardier Transportation
Bombardier Transportation is a global mobility solution provider leading the way with the rail industry’s broadest portfolio. It covers the full spectrum of solutions, ranging from trains to sub-systems and signalling to complete turnkey transport systems, e-mobility technology and data-driven maintenance services. Combining technology and performance with empathy, Bombardier Transportation continuously breaks new ground in sustainable mobility by providing integrated solutions that create substantial benefits for operators, passengers and the environment. Headquartered in Berlin, Germany, Bombardier Transportation employs around 40,650 people and its products and services operate in over 60 countries.