Delphi to buy U.K. auto parts firm for $988 million
The acquisition will give Delphi a stronger hybrid product portfolio and a stronger presence in Asia
GILLINGHAM, England and TROY, Mich.—Delphi Automotive is trying to acquire FCI Group’s (FCI) Motorized Vehicles Division (MVL) which makes automotive connection systems.
The transaction is valued at CAN$988 million (€765 million) and is expected to close by year-end 2012, subject to acceptance of the offer and regulatory approvals.
The acquisition will give Delphi a stronger product catalog for hybrid and electric vehicles. MVL’s facilities in China, India and Korea and provides Delphi with a stronger foothold in Asia.
MVL will become part of Delphi’s Electrical / Electronic Architecture segment and posted revenue of $893 million (€692 million) in the year ended December 31, 2011.
Delphi is MVL’s largest customer and expects “total annual full run-rate pre-tax synergies of $80 million to be fully achieved in 2015.”
The deal is subject to customary regulatory consents and approvals and acceptance of the binding offer by FCI.
Delphi says the transaction is expected to have no impact on its previously announced $300 million share repurchase program, which will be executed through 2012.