Delphi in ‘exclusive talks’ on $958-million acquisition of Motorized Vehicles Division

Article by Christian Andrei, on May 27, 2012

Delphi Automotive Plc is in "exclusive talks" to take control of Motorized Vehicles Division, the electrical connectors manufacturing unit of FCI Group from Bain Capital, for around 764 million euro or $958 million, the company disclosed. Delphi, which is the former parts unit of General Motors Co., further stated that the acquisition of FCI Group's electrical connectors maker should add 24 cents per share to 2013 earnings.

This does not include acquisition-related costs. The Motorized Vehicles Division had revenue of 692 million euro. This entity will become part of Delphi's electrical and electronic architecture unit, which achieved $2.93 billion revenue in 2011. Delphi President and Chief Executive Officer Rodney O'Neal commented that the acquisition will "solidify" the position of the company as one of the premier worldwide automotive suppliers.

It will also generate momentous shareholder value, he said. In 2010, Delphi regained its profitability after reducing costs in bankruptcy and concentrating on the sale of selling fuel-injection systems, among other vehicle components in fast emerging markets including China.

According to a regulatory filing, $2.46 billion of the $16 billion sales the company achieved last year was from the Asia Pacific region. Last month, O'Neal told reporters that Delphi was enthusiastic to invest as much as $1 billion on an acquisition.

He stated that it may seek companies and technologies to boost its powertrain, electrical connectors and electronics businesses. The company's stocks, registered in Gillingham, U.K., dropped 1.2% to $27.70 at the close in New York Stock Exchange trading. The shares then increased 2.9% 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 climbed 29% this year through today's close.

Topics: delphi

If you liked the article, share on:


Login or Create new account to add a comment!


Say hello to the fastest accelerating production car in the world: the new 2017 Tesla Model S P100D. Powered by a 100 kWh battery, this new model basically outruns almost...
by - October 25, 2016
Ever heard of the “Lynk & Co” automotive brand? Well, it is highly likely people haven’t. This is practically because this is new brand created by the joint venture between...
by - October 25, 2016
Mitsubishi is now officially part of the Renault-Nissan alliance after Nissan took over the Japanese car company recently. We know a lot has been happening in the car industry, but...
by - October 24, 2016
Driving the newest 2017 BMW 5-Series (G30), Clive Owen (Closer, Children of Men) returns to his role as “The Driver”. In this latest installment, what initially starts as a simple...
by - October 24, 2016
Many had wished that a Lamborghini Huracán Superleggera would somehow make a surprise debut at the recently held Paris Motor Show. Sadly, not a single Lamborghini appeared anywhere in sight....
by - October 24, 2016