Motherson Sumi Systems Ltd (MSSL), an auto components maker, said it has completed acquisition of Finland’s PKC Group Plc for € 571 million (over Rs4,150 crore).
Holding 93.75 % of PKC’s outstanding shares and stock options, Motherson is now the controlling shareholder of PKC Group.
The purchase will help the company expand its base significantly in the American and European commercial vehicle segment.
“We are very happy to announce that we have successfully acquired 93.75 per cent shareholding in the PKC Group, which has significant market presence in the American and European markets with major growth plans in China,” MSSL chairman Vivek Chaand Sehgal said in a statement.
The recent acquisition is in conformation of the company’s declared policy of focusing on these overseas markets to create enhanced value for all stakeholders, including the investors.
Earlier, MSSL and PKC had sealed an agreement pertinent to which MSSL launched a voluntary public offer for the acquisition of all the issued and outstanding share capital and voting rights of the PKC Group.
The company has obtained all the pre-closing regulatory approvals for the transaction prior to completion of the offer.
PKC is a global tier 1 supplier of wiring harness and associated components. Its provides services to the original equipment manufacturers (OEMs) in the heavy and medium duty commercial vehicles and locomotive segments. Headquartered in Helsinki, Finland it caters to clients across North America, Europe, Brazil and China.
The acquisition of PKC will propel MSSL’s business and expand its presence in the European market of global wiring harness business for commercial vehicles.
This being its 16th acquisition since 2002, MSSL has set a target of achieving $18 billion turnover by 2020 through its global expansion.