Companies

Suprajit Engineering to acquire Norwegian Light Duty Cable unit for $42 million

Our Bureau | Updated on: Oct 29, 2021
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Transaction also involves the transfer of global sales and engineering expertise

Suprajit Engineering, a Bengaluru headquartered automotive components supplier, has announced that it has signed an agreement to acquire Light Duty Cable (LDC) business unit of Kongsberg Automotive ASA, which is listed on the Oslo Stock Exchange, Norway for an enterprise value of $42 million (approx. ₹315 crore).

The LDC business unit of Kongsberg Automotive Group consists of cable business, supplying to automotive, non-automotive and two-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, a release from the company added. The transaction is expected to close by end of January 2022. LDC has three manufacturing plants located in Matamoros, Mexico; Siofok, Hungary; and Shanghai, China; apart from 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 total employee strength of LDC is approximately 1300 employees at the end of Q2, Suprajit said in press release. The current year sales of the division is expected to be in the range of $90 million.

Suprajit said that LDC has marquee global customers in automotive, non-automotive and two-wheeler businesses and is a segment leader in its own right. With this, Suprajit will emerge a leader in control cables in all these segments with strong global presence, the company claimed. LDC will be a very complimentary fit in its manufacturing footprint, customer base, product and technology, it added. 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.

Ajith Rai, Founder and Chairman of Suprajit, commenting on the transaction said “The LDC business unit of Kongsberg Automotive is a perfect fit for Suprajit. With LDC’s manufacturing footprint in 3 continents with sales, business development and engineering support across the world, and, with the annual cable capacity of 400+ million would make Suprajit a truly global major in the cables business”

Published on October 29, 2021

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