Motherson Sumi Acquires Empire Rubber, Australia through its subsidiaries

Motherson Sumi Systems Ltd has announced that the Company through its subsidiaries, Motherson Elastomers Pty Ltd and Motherson Investments Pty Ltd, has acquired, subject to approval of agreement by Australian Industrial Relations Commission, the business and assets of Empire Rubber (Bendigo, Victoria, Australia), which had been engaged in rubber mixing and manufacture of rubber extruded components, from Huon Corporation Pty Ltd (in Liquidation), together with transfer of about 100 employees on going concern basis.

The acquisition is expected to generate an annual business of approx Aus$ 35 million giving the Company an access for supply of these components to automotive OEM's and Tier I suppliers as well as non-automotive customers, including business under the trading name "SilentBloc" in Australia. The acquisition will strengthen the Company's positioning as a full systems supplier to the OEMs.

The stock closed the day at Rs.106.70, down by Rs.1.40 or 1.30%. The stock hit an intraday high of Rs.108.90 and low of Rs.106.40. The total traded quantity was 5665 compared to 2 week average of 3034.

Source : Equity Bulls

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