Suprajit announced it has signed a Definitive Share and Asset Purchase Agreement to acquire Light Duty Cable (LDC) business unit on October 28, 2021 with Kongsberg Automotive ASA, listed on the Oslo Stock Exchange, Norway.
The LDC business unit of Kongsberg Automotive Group consists of cable business, supplying to automotive, non-automotive and 2-wheeler segments along with Electro-Mechanical Actuators (EMA). This transaction also involves the transfer of global sales and engineering expertise related to this business to Suprajit. The transaction is expected to close by end of January 2022, the statement said.
LDC consists of 3 manufacturing plants located in Matamoros – Mexico, Siofok – Hungary, and Shanghai – China, and a warehouse in Brownsville – USA. LDC’s global business development and engineering teams are at plants and other key geographies including the US, Germany, France, Norway, Sweden and the UK, and will come under the fold of Suprajit, the statement said.
The total employee strength of LDC is approximately 1300 employees at the end of Q2. The current year sale is expected to be in the range of US$ 90 million. Enterprise value of the transaction is pegged at US$ 42.00 million.
LDC has marquee global customers in automotive, non-automotive and 2-wheeler businesses and is a segment leader in its own right. With this, Suprajit will emerge a global leader in control cables in all these segments with strong global presence. LDC will be a very complimentary fit in its manufacturing footprint, customer base, product and technology.
Through this transaction, Suprajit will also add key actuation technologies that can be brought to other customers of Suprajit. EMA will emerge as a new product segment in the future, for the group, the statement added.
Kongsberg Automotive is a global automotive supplier, headquartered in Zurich. Through this divestment, Kongsberg Automotive will realign its product portfolio and this transaction will provide a strong focus to the cables business as part of Suprajit. Suprajit is confident to grow the LDC business unit profitably, giving necessary focus to enhance the scale and optimize synergies for maximum customer comfort, the statement said.
Suprajit Engineering Ltd is the third Largest Light duty Control cable manufacturer in the world and the largest Automotive Halogen Bulb manufacturer in India.
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