ZURICH: Kongsberg Automotive has entered into an agreement for the sale of the Light-Duty Cables (LDC) business unit to Suprajit Engineering Limited.

The two companies entered into a definitive agreement on October 28, 2021. Under the terms of the transaction, Suprajit will acquire Kongsberg Automotive’s LDC business unit for an Enterprise Value of EUR 37.7 million.

The transaction, subject to regulatory approvals and other customary closing conditions and adjustments, is expected to close in the first quarter of 2022. With this transaction, all related contracts, employees, and other assets will be transferred to Suprajit. This includes LDC’s three main operations in Mexico, Hungary, and China, concerning a total of approximately 1,300 employees.

Light-Duty Cables (LDC) business unit is engaged in the development and manufacture of mechanical and electro-mechanical light-duty cables mainly used in on-highway and off-highway applications.

This transaction is a part of the transformational ‘Shift Gear’ program at Kongsberg Automotive. It seeks to improve performance, optimize and future-proof the product portfolio as well as enable improved sustainability for Kongsberg Automotive and its partners.

Kongsberg Automotive’s Global Leadership Team, led by President & CEO Joerg Buchheim, is evaluating, and developing its technology-driven business towards e-mobility in order to position the company effectively and sustainably for the future.

As part of these evaluations, it considered the sale of the Light-Duty Cables (LDC) business unit and the Light-Duty Cables portion of the Off-Highway business unit to Suprajit, a global leader in the automotive cable industry.

“We are convinced that this step allows Kongsberg Automotive to further focus our resources and investment on our high-potential, technology-driven and know-how-intensive business areas. We strongly believe that this transaction is in the best interest of Kongsberg Automotive and our shareholders and also offers a great opportunity for the LDC employees and the new owner Suprajit to achieve economies of scale” says Joerg Buchheim, President & CEO of Kongsberg Automotive.

“The LDC business unit of Kongsberg Automotive is of high strategic importance for Suprajit. With three manufacturing units in Hungary, Mexico, and China, LDC enhances Suprajit’s geographical footprint and provides us with an enhanced customer list.

LDC’s employees and engineering capabilities will further strengthen Suprajit Engineering Limited. Their cable business will solidify our stature as a major global player in mechanical cable systems. The electromechanical actuation division will be a new, exciting business for us to enter into,” says Ajith Rai, Founder and Chairman of Suprajit.

Kongsberg Automotive provides world class products to the global vehicle industry. The company has more than 27 production facilities worldwide. The product portfolio includes seat comfort systems, driver and motion control systems, fluid assemblies, and industrial driver interface products developed for global vehicle manufacturers. www.kongsbergautomotive.com

Suprajit is India’s largest automotive cable and halogen bulb maker with an annual global capacity of 300 million cables and 110 million halogen bulbs. Suprajit’s customer list includes most Indian automotive majors. It also exports to many marquee global customers. www.suprajit.com