- Extends Delphi's leadership in electrical architecture components. HellermannTyton has a leading market position in providing cable management solutions in the vehicle and has an extensive range of products that are mission-critical in nature and are highly engineered to customer specification.
- Strong growth fundamentals and EBITDA margins. HellermannTyton has a well-established track-record of growing 3-5 percentage points faster than its end markets and has realized top-line constant currency CAGR of approximately 10 percent per year since 2010, while maintaining EBITDA margins of approximately 20 percent.
- Transaction is accretive to Delphi's EPS. Delphi expects the transaction to be 15 cents accretive to earnings per share starting in 2016.
- Significant operating and revenue synergies. The acquisition will also be immediately accretive to growth and margins based on significant operating synergies from sourcing and supply chain initiatives. Delphi has a strong track record of successfully integrating businesses like HellermannTyton and believes it will be able to achieve synergies of approximately $50 million per year by the end of 2018 through sourcing savings, supply chain savings and leveraging the combined product portfolio.
- Allows Delphi to capitalize on attractive industrial end markets. The acquisition of HellermannTyton will enhance Delphi's already strong relationships with key global automakers and will provide access to HellermannTyton's non-automotive end markets.
Quanergy and Delphi will collaborate to bring a range of low-cost, high-performance solid state LiDAR products to the automotive market to provide a complete vehicle perception solution for Level 3 and 4 automation applications. The prospect of a lower-cost ADAS solution could bring widespread adoption of the life-saving active safety technology.Tula Technology: Delphi also made a minority investment in Tula Technology, which develops software that provides cost-efficient, fuel economy gains in cylinder deactivation technology. Delphi and Tula's engine control system software can increase fuel efficiency and cut emissions without sacrificing drivability or performance. The combined solution will allow the engine's cylinders to fire or skip (deactivate) on a continuously variable basis, which ultimately increases fuel efficiency by up to 15 percent in a cost-efficient manner. "These companies bring unique and strategic capabilities in software and sensing technology, strengthening our portfolio in active safety and fuel economy, two critical long-term growth areas for the automotive market," said Jeff Owens, Delphi chief technology officer. "We have had strong working relationships with these companies and believe the synergies are excellent. We continue to explore additional acquisition and investment opportunities that will enhance our growth in our core safe, green and connected areas of focus." Reception Systems: Additionally, Delphi has entered into a definitive agreement to sell its reception systems business, which consists of automotive antennas and in-vehicle TV tuners, to Northeast Industries Group Corp., a leading Chinese automotive supplier. Delphi expects to complete the sale in the third quarter of 2015, subject to regulatory approval. Conference Call and Webcast Delphi will host a conference call to discuss financial results and these transactions today at 8:30 a.m. (ET). A link to the live webcast of the call and presentation materials will be available on the Delphi Investor Relations website at http://investor.Delphi.com/. To participate by telephone, please dial 888.486.0553 (U.S.) or 1.706.634.4982 (international) 15 minutes prior to the start time of the call and ask to be connected to the Delphi Automotive conference call. The conference ID number is 75261541. About Delphi Delphi Automotive PLC (NYSE: DLPH) is a leading global technology company for automotive and commercial vehicle markets delivering solutions that help make vehicles safe, green and connected. Headquartered in Gillingham, U.K., Delphi operates technical centers, manufacturing sites and customer support services in 33 countries. Visit www.delphi.com. Forward Looking Statement This press release contains forward-looking statements within the meaning of the Securities Act of 1933 and of the Securities Exchange Act of 1934. These forward-looking statements reflect, when made, Delphi's current views with respect to current events and certain investments and acquisitions by Delphi. All statements that address our expectations surrounding consummation of such transactions and their impact on Delphi, as well as future operating, financial or business performance or our strategies or expectations are forward-looking statements. Such forward-looking statements are subject to many risks, uncertainties and factors relating to Delphi's operations and business environment as well as market conditions, which may cause Delphi's actual results to be materially different from any future results, express or implied, by such forward-looking statements. In some cases, you can identify these statements by forward-looking words such as "may," "might," "will," "should," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "projects," "explore," "potential," "outlook" or "continue," and other comparable terminology. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to consummate pending acquisitions and our ability to integrate and realize the benefits of pending and recent acquisitions; global economic conditions, including conditions affecting the credit market; the cyclical nature of automotive sales and production; the potential disruptions in the supply of and changes in the competitive environment for raw material integral to our products; our ability to maintain contracts that are critical to our operations; our ability to attract, motivate and/or retain key executives; our ability to avoid or continue to operate during a strike, or partial work stoppage or slow down by any of our unionized employees or those of our principal customers, and our ability to attract and retain customers. Additional factors are discussed under the captions "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our filings with the Securities and Exchange Commission, including those set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014. New risks and uncertainties arise from time to time, and it is impossible for Delphi to predict these events or how they may affect Delphi. Delphi disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law.