Delphi Automotive (DLPH: Quote) announced that it has entered into exclusive negotiations and has made a binding offer to acquire FCI Group's Motorized Vehicles Division or MVL for about EUR 765 million on a cash and debt-free basis or approximately $972 million at current exchange rates.
MVL is a global manufacturer of automotive connection systems with a focus on high-value, leading technology applications. The transaction 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 a global provider of high-performance interconnection systems for a wide range of applications. MVL had revenue of EUR 692 million in the year ended December 31, 2011, and is owned by affiliates of Bain Capital.
Completion of the transaction is subject to customary regulatory consents and approvals and acceptance of the binding offer by FCI, which can only occur after consultation with certain of MVL's works councils.
Delphi said it intends to finance the transaction through a combination of cash on hand and debt. Additionally, the transaction is expected to have no impact on the previously announced $300 million share repurchase program, which will be executed through 2012 or until the $300 million has been utilized.
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by RTT Staff Writer
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