Delphi agreed to buy HellermannTyton Group of £ 1.07 billion ($ 1.7 billion) to add wiring gear used in automobiles.
HellermannTyton, a UK supplier, manufactures ties, insulation and cable protection systems in automobiles. The Delphi acquisition will help capitalize on the growing demand for cars that connect to the Internet, mobile phones and other devices, Delphi said.
"With consumers now demanding more connectivity in their vehicles, electrical architecture is the facilitator for the content of added vehicle," said Kevin Clark Delphi CEO in a statement.
Delphi also said it bought a software manufacturer of automatic driving and took a stake in a company whose technology help cars avoid objects.
"Delphi remains focused on the car of the future," said Chris McNally, an analyst at Evercore ISI in London. "He's carrying this burden in the space of connected cars."
Delphi is based in Gillingham, England, and runs from Detroit. The company moved its domicile to the UK, where corporate tax rates are lower, in the wake of 2009 auto industry bailout from the US government.
HellermannTyton traces its roots to manufacturers based in Germany and the UK in the 1930s Doughty Hanson & Co., a private equity firm UK HellermannTyton bought in 2006, took public in 2013 and sold its remaining stake last year.
Delphi said it plans to complete the HellermannTyton agreement at the end of the fourth quarter.
The purchase also allows Delphi to expand into products for other industries, such as aerospace, defense, alternative energy and public transport, Clark said. Bankers Goldman Sachs Group and JPMorgan Chase & Co. advised on the sale HellermannTyton while Barclays Plc. Delphi advised.
HellermannTyton was valued at 14.7 times earnings last year before interest, taxes, depreciation and amortization, the companies said.
Q2 earnings rise
Separately, Delphi said its second-quarter net income increased but revenue fell as a stronger dollar hurt overseas results.
Delphi earned $ 667 million on sales of $ 3.86 billion in the second quarter. Net income includes an after-tax gain of $ 285 million on the sale of its German Thermal Systems supplier Mahle. A year earlier, net income of $ 406 million was recorded.
Revenue fell 5 percent from $ 4.06 billion a year ago, largely due to unfavorable exchange rates, the company said.
Delphi said sales grew in the quarter by 8 percent in Asia, 5 percent in North America and 4 percent in Europe, partly offset by a decrease of 15 percent in South America.
Second acquisition
Delphi also said today that bought Ottomatika, a manufacturer of automated software management, and made an investment in Quanergy, a company that develops light detection and ranging scanners, the technology that allows vehicles to detect objects and run digital mapping, surface modeling and projection of distant image. These deals will strengthen the application of the system of advanced driver assistance Delphi and can help accelerate the adoption of automated vehicles, the company said.
The manufacturer of components also made a minority investment in Tula Technology, a manufacturer of engine control software that can increase fuel efficiency and reduce emissions.
Delphi agreed to sell its reception-systems business, consisting of antennas and the automotive vehicle TV tuners, northeast Industries Group Corp. a Chinese automotive supplier.
Delphi expects to complete the sale in the third quarter, subject to regulatory approval, he said. Financial terms were not disclosed for any of the deals that are not HellermannTyton.
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