Bombardier Sells UK Rolling Stock Electrical Component and Systems Business to Motherson Sumi Systems Ltd
Motherson Rolling Stock Systems GB Ltd, which is wholly owned by Motherson Sumi Systems Ltd via PKC Group Ltd, and Bombardier Transportation have signed an agreement outlining that Motherson will acquire Bombardier’s assets related to the manufacture and installation of electrical components and systems for applications in the rail industry. These components include, among other things, wiring harnesses, panel and cabinet build and electromechanical assemblies, which are produced in Derby, UK.
Motherson will enter into a lease agreement for the section of Bombardier’s plant in Derby that is currently occupied by the business. All current employees will remain in their jobs. Through this deal Motherson expands its supply of electricals and wiring systems to Bombardier Transportation to include rolling stock projects in the United Kingdom.
Bombardier will transfer assets, employees and inventories on a debt-free and cash-free basis. The agreement is worth around 10.87 million GBP (12.63 million euros) – subject to customary adjustments. In the 2018 calendar year the business had a revenue of 36 million GBP (41.84 million euros). The transaction is subject to customary closing events. Motherson and Bombardier expect the deal to be finalised between April and June 2019.
V. C. Sehgal, Chairman, Motherson Rolling Stock Systems GB Ltd, 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.”
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 well continue to tirelessly serve our UK customers.”