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        IMA

Motherson Sumi to expand portfolio with Finnish group; deal worth EUR571 mn

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India-based car parts maker and engineering group Motherson Sumi Systems is to buy Finland’s PKC Group for EUR571 million. Headquartered in Helsinki, PKC is a global tier 1 supplier of wiring harness and associated components to OEMs in the heavy & medium-duty commercial vehicles segments across North America, Europe, Brazil and China.

Motherson Sumi says the proposed acquisition of PKC supports in expanding its presence in the niche market of global wiring harness business for commercial vehicles. “PKC has a strong presence in American and European wiring harness market for the commercial vehicle segment, which will provide new opportunities for growth,” the Indian firm said, while adding that it will help PKC to grow in the Asia Pacific region, which it says is a highly attractive market for almost all leading commercial vehicle manufacturers.

Motherson has set a target to achieve annual sales of US$18 billion by 2020, up from a total revenue of US$5.7 billion in its last fiscal year that ended on March 2016.

Said Vivek Chaand Sehgal, Motherson’s Chairman, “The prospect of two global teams coming together and the synergies that will be brought about, is very exciting to us. It will allow us to create huge value for our customers and to service our customers in additional locations in the world.”

The firm has appointed Motilal Oswal Investment Advisors Pvt. Ltd and Nordea Corporate & Investment Banking as financial advisers and White & Case as legal adviser in connection with the transaction.

PKC established its first wiring harness factory in 1969, and had over 22,000 employees and estimated revenue of approximately EUR846 million for the year 2016.

Motherson Sumi Systems is one of the world’s fastest growing specialised automotive component manufacturing company for OEMs. It was established in 1986 and is a joint venture between Samvardhana Motherson Group and Sumitomo Wiring Systems (Japan). With a diverse global customer base comprising of almost all leading automobile manufacturers globally, the company has a presence in 26 countries across six continents.

(IMA)


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