- Delphi to acquire HellermannTyton for £1.07 billion, expanding its
Electrical/Electronic Architecture global business
- Acquisition of software company, Ottomatika, and strategic
investment in 3D LiDAR company, Quanergy, boost leading active safety
and automated driving capabilities
- Investment in software company Tula Inc. expands Powertrain
offerings
- Company divests reception systems business
GILLINGHAM, England -- (Business Wire)
Strengthening its capabilities and portfolio offerings in key industry
growth areas, Delphi Automotive PLC (NYSE: DLPH) has executed a series
of acquisitions, investments and a divestiture.
HellermannTyton: Delphi has reached agreement on a recommended
offer to acquire HellermannTyton Group PLC (LSE: HTY), a leading global
manufacturer of high-performance and innovative cable management
solutions, for 480 pence in cash per share, which translates to
approximately £1.07 billion of market capitalization and implies an
enterprise value of $1.85 billion at today’s exchange rate.
The transaction has been recommended by the board of HellermannTyton and
is expected to close late in the fourth quarter of 2015, subject to
regulatory consents and approvals and approval by HellermannTyton’s
shareholders. Upon completion, HellermannTyton will become part of
Delphi’s Electrical/Electronic Architecture segment.
The acquisition expands Delphi’s product portfolio within the connected
vehicle solutions market and will help capitalize on the connected car
megatrend. It also further strengthens Delphi’s leading position in the
electrical architecture market, while providing a platform to grow in
HellermannTyton’s adjacent industrial end markets, including aerospace,
defense, alternative energy and mass transit.
“With consumers now demanding more connectivity in their vehicles,
electrical architecture is the enabler to that added vehicle content,”
said Kevin Clark, Delphi president and chief executive officer.
“HellermannTyton positions Delphi to provide customers with an even
broader portfolio of highly engineered and customized connection systems
and cable management solutions. By leveraging the combined capabilities
of both companies, we will be able to capitalize on additional growth
opportunities and create significant value for our customers and
shareholders.”
Strategic and Financial Benefits
- 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.
Ottomatika and Quanergy: To enhance its leading active safety and
automated driving capabilities, Delphi has acquired software company,
Ottomatika, and has made a strategic investment in 3D LiDAR sensing
leader, Quanergy. These strategic moves strengthen Delphi’s advanced
driver assistance system (ADAS) applications and could help speed the
adoption of automated vehicles. The ability to detect objects and
execute digital mapping, surface modelling and distant imaging is
enabled by the use of Light Detection and Ranging (LiDAR) scanners.
By combining Ottomatika’s automated driving software with Delphi’s
active safety systems, the two companies have developed a technology
platform for automated driving that enables a vehicle to make human-like
decisions.
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150729006890/en/
Contacts:
Delphi Automotive PLC
Investor Contact:
Jessica
Holscott
248.813.2312
Jessica.Holscott@delphi.com
Media
Contact:
Claudia Tapia
248.813.1507
Claudia.Tapia@delphi.com
Source: Delphi Automotive PLC
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