Motherson Rolling Stock Systems GB Ltd (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 (www.bombardier.com) to acquire Bombardier’s assets in connection with the production and installation of electrical components and systems for applications in the rail industry (BTRoS Interiors & Cabling Division is a subsidiary of the Bombardier Transportation Group that operates as a separate legal entity).

These applications comprise, among others, the manufacturing of wiring harnesses, panel and cabinet build and electromechanical assemblies in Derby.

MRSS (www.motherson.com) 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 the transfer of assets, employees and inventories on a debt-free and cash-free basis and is valued at about £10.87 million (subject to customary adjustments).

The revenue of the Bombardier business was £36 million (provisional) during the calendar year 2018. The transaction is subject to customary closing events and should be completed between April and June.

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 in 2015; it concluded a global partnership agreement with Bombardier Transportation GmbH in 2016.

With the signing of this agreement between MRSS and BTRoS, the relationship will expand to the UK.