Delphi in exclusive talks to buy electrical connector business for $958M
DETROIT (Bloomberg) -- Delphi Automotive Plc, the former parts unit of General Motors Co., said today it is in "exclusive talks" to acquire a unit of FCI Group from Bain Capital for about 764 million euro ($958 million).
Delphi said the acquisition of the unit, which makes electrical connectors, should add 24 cents per share to 2013 earnings, excluding acquisition-related costs.
The unit, called Motorized Vehicles Division, had revenue of 692 million euro and would become part of Delphi's electrical and electronic architecture unit, which had revenue of $2.93 billion last year.
"This transaction will solidify Delphi's position as one of the premier global automotive suppliers and will create significant shareholder value," Rodney O'Neal, chief executive officer and president of Delphi, said in a statement.
Delphi returned to profitability in 2010 after cutting costs in bankruptcy and focusing on selling fuel-injection systems and other car parts in faster-growing countries such as China.
The Asia Pacific region accounted for $2.46 billion of the company's $16 billion in sales last year, according to a regulatory filing.
Delphi was willing to spend as much as $1 billion on an acquisition, O'Neal told reporters last month. He said Delphi may seek companies and technologies to augment its powertrain, electronics and electrical connectors businesses.
The company, registered in Gillingham, United Kingdom, fell 1.2 percent to $27.70 at the close in New York Stock Exchange trading.
The shares then rose 2.9 percent to $28.50 at 4:33 p.m. after the close of regular trading in New York and the 4:15 p.m. announcement.
The shares have risen 29 percent this year through today's close.Contact Automotive News