Delphi plans to buy unit of FCI Group

Published: May 25, 2012 6:00 am ET

Related to this story

Topics Automotive, Mergers & Acquisitions, Injection Molding

DETROIT (May 25, 2:45 p.m. ET) – Troy, Mich.-based Delphi Automotive plc said it is open to more acquisitions after announcing May 24 that it has entered “exclusive talks” to acquire a unit of FCI Group from Bain Capital for about $958 million.

The auto supplier said it made an offer to buy FCI Group’s motorized-vehicle division for about $958 million. The transaction is expected to close by the end of 2012.

CEO Rodney O’Neal had said Delphi was willing to spend as much as $1 billion on an acquisition, and on May 24 he did not rule out further deals. He is also looking at paying dividends, buying back shares and funding the growth of the business, he said by telephone interview. Delphi had $1.4 billion of cash on hand at the end of March.

“We’ll look at a multitude of ways to get cash and value back to the shareholders, and acquisitions are just one,” O’Neal said. “That’s still possible, but there is nothing currently on the radar screen. It’s possible, but unlikely.”

Delphi expects the FCI Group acquisition to add about 24 cents to per-share earnings in 2013, excluding costs related to the acquisition. Its stock closed Thursday at $27.70 and is up 29 percent this year.

FCI’s motor-vehicle division will become a part of Delphi’s electrical and electronic architecture segment. The unit makes interconnection systems for safety restraints, powertrains and electrical vehicles. The British company’s sales totaled about $1.08 billion in 2011.

O’Neal said that the deal will strengthen the company’s connector product portfolio and that Delphi will be “better positioned to further drive growth in electronic content in motor vehicles.”

The acquisition will broaden Delphi’s relationship with automakers around the world, particularly in Europe and Asia.

Gillingham, England-based FCI Group has more than 14,000 employees in 30 countries.

“This is a rare opportunity,” O’Neal said on the call. “You don’t catch assets like this in this space.”


Comments

Delphi plans to buy unit of FCI Group

Published: May 25, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

Gerresheimer opens first development center in China

October 24, 2014 1:34 pm ET

Medical molder Gerresheimer AG has launched a development center for medical plastic systems in Dongguan, China.    More

Image

SRG opens second China auto parts factory

October 24, 2014 11:25 am ET

U.S. automotive supplier SRG Global Inc. said Oct. 23 it is opening its second plant in China, an injection molding, plating and painting facility in ...    More

Image

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events