NEW DELHI: Motherson Sumi Systems (MSSL), India's largest auto component maker by turnover, has announced the acquisition of USbased Stoneridge's wiring harness business for $65.7 million (around Rs 385 crore) becoming one of the largest players in the vehicle wiring business. MSSL, the flagship company of the $5.4-billion Samvardhana Motherson Group, has acquired Stoneridge through a wholly-owned subsidiary.

The US-based company, with annual revenue of approximately $300 million, has six manufacturing facilities spread across Portland, Indiana in the US, Chihuahua, Saltillo and Monclova, all in Mexico, as well as an engineering and administrative centre located in Warren, Ohio, the company said in a statement. Vivek Chaand Sehgal, chairman of the Samvardhana Motherson Group, said the acquisition is a step further in the company's strategy of growing all its product segments and maintaining a well-balanced product portfolio.

"With this acquisition, MSSL gets one of the most experienced wiring harness manufacturing operations in the region which would increase our customer reach and help us to service customers in these geographies," he said. The deal, structured by way of asset purchase, is subject to completion of regulatory approvals and is likely to be wrapped up by the third quarter of 2014. Citigroup Global Markets were the financial advisor to the transaction.

MSSL had started its wiring harness company in 1986 while Stoneridge Inc's wiring harness business has a history of 48 years. The Indian company is expecting strong synergies with the newly acquired business in terms of customer segments, products and global operations. Its new American entity principally caters to commercial vehicles, agricultural equipment, material handling equipment and off-highway vehicle segments in the critical North American market.

Source : economictimes.indiatimes.com