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

Article by Christian A., 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:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries