TRW has announced today that the company has entered into a definitive agreement with the founding members of Dalphi Metal España, S.A. (“Dalphimetal”) to purchase a 68.4% stake in Dalphimetal for EUR113 million, or approximately US$137 million, plus the assumption of debt totalling EUR84 million or approximately US$103 million.
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Headquartered in Madrid, Spain, Dalphimetal, a privately held company, designs, develops and manufactures airbags and steering wheels for a diverse mix of leading European automakers. The company reported 2004 sales, primarily in Europe, of EUR371 million or approximately US$453 million. Dalphimetal’s largest customers (based on 2004 sales) are Peugeot, Renault, Volkswagen and Volvo. The company employs approximately 2,000 people with production facilities located in Spain, Portugal, France and Tunisia.
“The addition of Dalphimetal to our business further broadens our diversification, enhances our technological capabilities in the passive safety segment and bolsters our presence in Europe,” said John C. Plant, president and chief executive officer. “We believe this acquisition should also better position us to meet the growing demand for safety related products and systems in a very competitive marketplace.”
Mr Plant added, “Following regulatory approvals, the next step in the process will be focused on implementing the business combination in a manner that is both seamless to our customers and captures the collective attributes of each organisation.”
J. Ramon Sanz, spokesperson for the founding members of Dalphimetal, said: “We are very pleased to have formed a business combination that ultimately blends the heritage of Dalphimetal with the scale of an industry leader.”
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By GlobalData“This combination represents a strong cultural fit that brings together two companies that have built their success on providing their customers with leading products and technologies.”
TRW intends to finance the acquisition initially with a combination of cash and existing credit facilities. The acquisition is expected to close during the fourth quarter of 2005 or the first quarter of 2006, subject to European Union antitrust approval and other related closing conditions.
