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Delphi Automotive (NYSE: DLPH) announced today that it has entered into exclusive negotiations and has made a binding offer to acquire FCI Group’s (“FCI”) Motorized Vehicles Division (“MVL”). MVL is a leading global manufacturer of automotive connection systems with a focus on high-value, leading technology applications. The transaction is valued at €765 million on a cash and debt-free basis (approximately $972 million at current exchange rates) and is expected to close by year-end 2012, subject to acceptance of the offer and regulatory approvals. Delphi expects the transaction to be $0.24 accretive to 2013 earnings per share, excluding acquisition-related costs.
MVL, which will become part of Delphi’s Electrical / Electronic Architecture segment (“E/EA”), is the leading global provider of high-performance interconnection systems for a wide range of applications. These include connectors for the high-growth safety restraint systems (“SRS”) market, powertrain and electrical vehicles. MVL had revenue of €692 million
1 in the year ended December 31, 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 Rodney O'Neal, chief executive officer and president of Delphi. “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.”
Liam Butterworth, president of MVL, stated, “The opportunity to join a global organization 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, while exceeding the expectations of customers worldwide.”