Delphi has put its toe back in the acquisition water with the announcement it intends to purchase FCI Group’s Motorised Vehicles Division (MVL) for EUR765m (US$962m).
The deal is subject to acceptance of the offer and regulatory approvals, but if successful, will give Delphi a further application of automotive connection systems.
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The supplier says MVL, which will become part of Delphi’s Electrical / Electronic Architecture (EEA) segment, is the leading global provider of interconnection systems for a wide range of applications. These include connectors for safety restraint systems, market, powertrain and electrical vehicles.
MVL had revenue of EUR692m in the year ended 31 December, 2011 and is owned by affiliates of Bain Capital.
“This transaction will solidify Delphi’s position as one of the premier global automotive suppliers and will create significant shareholder value,” said Delphi CEO and president, Rodney O’ Neal. “The addition of MVL strengthens the high growth connector product portfolio of our E/EA segment, broadens our mix of global customers and furthers our strategy of providing our customers with solutions to address the trends of safe, green and connected.
“As a result, following the acquisition, we will be better positioned to further drive growth in electronic content in motor vehicles. As MVL’s largest customer, we respect their accomplishments and share a commitment to developing innovative products and delivering solutions that meet a wide range of needs and applications.”
For his part, MVL president, Liam Butterworth, said: “The opportunity to join a global organisation like Delphi, with an outstanding reputation in the connector and electronic architecture industries, will better position us to pursue future growth opportunities.
“By leveraging both parties’ strong innovation and R&D capabilities, we will continue to provide the market with the highest quality innovative interconnect systems.”
Delphi added the transaction would enhance its portfolio of connectors for hybrid and electric vehicles, wile equally diversifying its customer base.
The purchase would also broaden relationships with OEMs says Delphi, such as Chrysler, Daimler, Ford, General Motors, Hyundai, PSA Peugeot-Citroën, Renault Nissan and Volkswagen, while its Asian footprint would be strengthened in China, India and South Korea.
Delphi expects synergies of US$80m to be achieved by 2015 from procurement, product development and the supply chain.
