Motherson Rolling Stock Systems GB (MRSS) has signed a definitive agreement to acquire Bombardier Transportation (Rolling Stock) UK’s electrical components and other associated assets for railway applications.

The scope of the acquisition also includes manufacturing capabilities for wiring harnesses, panel and cabinet build and electromechanical assemblies in Bombardier’s Derby site.

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MRSS will sign a lease agreement for the Derby site. The company will continue to operate the business with its current employees.

The overall transaction, including the transfer of assets, employee and inventories, is valued at around £10.87m on a debt-free and cash-free basis.

“This milestone is testament to the progress we continue to make on the Bombardier Transportation transformation agenda.”

The divestment of Bombardier UK’s rolling stock electrical component and systems business is part of its transformation programme.

Bombardier Transportation Rolling Stock Equipment president Bart Vantorre said: “This milestone is testament to the progress we continue to make on the Bombardier Transportation transformation agenda.

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“Our long-standing relationship with Motherson and their deep expertise in electrical distribution make them the ideal partner for us as we continue to tirelessly serve our UK customers.”

MRSS is an indirect subsidiary of Motherson Sumi Systems (MSSL) through PKC Group.

The company is engaged in delivering wiring harnesses primarily to European and North American markets.

The acquisition will help to bolster MRSS’s electrical and wiring system supplies to Bombardier Transportation for rolling stock projects in the UK.

Subject to customary closing conditions, the transaction is expected to be completed in the second quarter of this year.