The Hindu Business Line : Motherson Sumi buys Aussie co Empire Rubber

New Delhi May 15 Motherson Sumi Systems Ltd through its subsidiaries, Motherson Elastomers Pty Ltd and Motherson Investments Pty Ltd on Tuesday acquired the business and assets of Australian firm Empire Rubber for an undisclosed amount.

Empire Rubber has been bought from Huon Corporation Pty Ltd, which is currently under liquidation. The Australian company is engaged in rubber mixing and manufacture of rubber-extruded components, and supplies to companies such as Ford Motors and Fenner.

According to the company, the acquisition is expected to generate an annual business of about A $35 million, giving the company an access to rubber extruded components for automotive OEMs and Tier I suppliers as well as non-automotive customers. Motherson will also take on Empire's business under the trading name `SilentBloc' in Australia. The deal is subject to approval of agreement by the Australian Industrial Relations Commission.

Core business

Through the acquisition, Motherson will take on 100 Empire Rubber employees as part of the deal. "We are into a variety of businesses and the acquisition will help us in supplying to our core businesses as it produces a different set of OEMs. It makes a good natural fit," said Mr Pankaj Mital, Chief Operating Officer, Motherson Sumi Systems Ltd.

Mr Mital also said that the acquisition would strengthen the company's positioning as a full systems supplier to the OEMs. However, he said it was too early to comment on the possibility of outsourcing business to India.

"As we grow the business we will see how best to create value for the employees," he said.

Founded in 1975, Sumi Motherson Group has an overseas presence in the United Kingdom, Austria, Germany, the US, Czech Republic, Singapore and Australia. Its greenfield facilities are based in Sharjah and Sri Lanka.

More Stories on : Mergers & Acquisitions | Automobile Components

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