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Indian Motherson to buy Finland's PKC for $609m

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Staff Writer | January 20, 2017
India-based car parts maker and engineering group Motherson Sumi Systems has made a 571 million-euro ($609 million) offer to buy Finland's PKC Group, a maker of wiring harnesses for trucks.
Motherson Sumi Systems
Acquisition   PKC last year had sales of about 846 million euros
"(PKC) are experts in the commercial vehicle segment and we are strong in passenger vehicles, so there's a tremendous amount of synergies that can be created," Motherson Chairman Vivek Chaand Sehgal told a news conference in Helsinki.

The proposed acquisition will double the revenues from Motherson Sumi's wiring harness business, G.N. Gauba, chief financial officer, told Reuters.

Motherson has set a target to achieve annual sales of $18 billion by 2020, up from total revenues of $5.7 billion in its last fiscal year that ended on March 31, 2016.

The deal is likely to be financed using Motherson Sumi's own cash and undrawn bank credit, Gauba said, adding it would finalise the funding plan once the acquisition is approved.

PKC, which last year had sales of about 846 million euros ($900 million) and a core profit of 64 million euros, said its board backed the offer.