Motherson Sumi to acquire Finland’s PKC Group for $609 mn

The Dollar Business Bureau

India-based leading car parts manufacturer Motherson Sumi Systems Ltd (MSSL) has agreed to acquire Finland’s truck wire manufacturer PKC Group for $609 million (571 million euros).

“At a meeting of its Board of Directors held on January 19, 2017, MSSL has approved a proposal to launch a voluntary, recommended public tender offer for the acquisition of the outstanding share capital and voting rights of PKC Group Plc (PKC), Finland,” Motherson Sumi said in a statement.

MSSL has offered a cash consideration of 23.55 euros per share/options, representing a 51% premium to a closing price of PKC on Thursday, it said.

MSSL will extend a voluntary and recommended public tender proposal to buy all the outstanding and issued shares and options in PKC, it added.

“The proposed PKC acquisition would support the MSSL in increasing its presence in the niche world market of wiring harness products for commercial vehicles,” the release said.

PKC has a wide presence in European and American market for wiring harness for commercial vehicles which will offer new prospects for MSSL to expand its market in these regions, it added.

Vivek Chaand Sehgal, Chairman, MSSL said, “Wiring harnesses are ever more important to the products of our customers and hold a special place within our hearts at MSSL, because it is our company's genesis.”

“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,” he added.

The deal is subject to the necessary regulatory approvals and is likely to be completed by March end.

The acquisition will be done through a wholly-owned subsidiary of MSSL that is to be established for this purpose.

Based in Helsinki, PKC is a world tier 1 supplier of wiring harness and related components to OEMs (Original Equipment Manufacturers) in the segments of locomotive and heavy & medium duty commercial vehicles across Brazil, Europe, China and North America.