Strategic and Financial Benefits
- Further Strengthens Delphi’s Leading Position in the Global Automotive Market. The transaction will further strengthen E/EA’s position as a market leader in the global automotive connectors segment and accelerate its entry into the high-growth SRS segment. In addition, the transaction will greatly enhance Delphi’s portfolio of connectors for hybrid and electric vehicles.
- Significantly Enhances Position with High-Growth Customers and Diversifies Customer Base. The transaction will broaden Delphi’s relationships with leading automotive OEMs across the globe, including Chrysler, Daimler, Ford, General Motors, Hyundai, PSA Peugeot-Citroën, Renault Nissan and Volkswagen Group.
- Expands Delphi’s Global Footprint, Especially in Asia. MVL’s robust product portfolio and global operations, including its significant manufacturing and engineering presence in China, India and Korea, will further strengthen Delphi’s position in the high-growth Asian market.
- Delivers Significant Synergies and Expands Delphi’s Industry-Leading EBITDA Margins. Delphi expects total annual full run-rate pre-tax synergies of $80 million, to be fully achieved in 2015. The synergies are expected to come from procurement, product development and supply chain. Building on a strong base product portfolio and customer positions, the combined businesses will expand Delphi’s EBITDA margins.
- Accretive to EPS. Delphi expects 2013 EPS accretion to be $0.24, excluding acquisition-related costs and including approximately $0.12 amortization of acquired intangible assets.