Indian auto parts maker Motherson Sumi Systems Ltd (MSSL) said on Monday it had completed the buyout of Finland's PKC Group for 571 million euros ($619.4 million).
Motherson is now the controlling shareholder of PKC Group, holding 93.75 percent of PKC's outstanding shares and stock options.
"There is a great synergy between MSSL and PKC and a complementary geographical presence to serve the customers in all regions," Motherson said in a statement.
The move will help Vivek Chaand Sehgal-led group to expand its footprint significantly in American and European commercial vehicle market segment.
Announcing the deal closure, Sehgal said, "We are very happy to announce that we have successfully acquired 93.75% shareholding in PKC Group which has significant market presence in the American and European markets with major growth plans in China. This is in sync with our declared policy of focusing on these markets to create enhanced value for all our stakeholders including investors."
"MSSL has always believed in both organic and inorganic growth and has seen an average annualized growth of 40 per cent over the last ten years. We wish to thank all our shareholders for being part of the growth story of the company owned by them. I see tremendous growth potential ahead and we will continue to work towards becoming a globally preferred solutions provider for the transportation industry" added Sehgal.
MSSL will continue to keep its focus on providing full system solutions to its customers globally. With the operational expertise of MSSL and technical know-how of PKC, the company will add more value to its customers and suppliers. MSSL's success in managing its wiring harness business with a focus on training its' people, managing multiple plants with high degree of vertical integration from design to modules will help unlock the full potential of PKC.
Shares of Motherson, which have gained 12 percent since the deal was made public on January 20, were trading slightly higher on Monday.