NEWS

Delphi Automotive to buy UK's HellermannTyton for about $1.67 bln

Thursday, Jul 30, 2015

Delphi Automotive Plc said it will buy UK's HellermannTyton Group for about 1.07 billion pounds ($1.67 billion) to expand its electrical architecture business.

The deal will help capitalize on the connected car megatrend and will add 15 cents to its earnings per share starting 2016, the auto supplier said.

"HellermannTyton positions Delphi to provide customers with an even broader portfolio of highly engineered and customized connection systems and cable management solutions," said Delphi Chief Executive Kevin Clark.

Delphi will pay 480 pence in cash for each HellermannTyton share, a 44 percent premium to its closing price on the London Stock Exchange on Wednesday.

Clark said in April that Delphi could spend $1 billion to $3 billion in 2015 on a large acquisition related to its traditional "hardware" business and will make smaller investments in software.

Vehicle connectivity and methods to increase fuel efficiency are high-margin and high-growth areas in the automotive industry as vehicles become more autonomous and automakers strive to meet stringent U.S. fuel economy regulations.

Delphi said on Thursday it bought software company Ottomatika and made a strategic investment in 3D LiDAR sensing company, Quanergy.

The company also made a minority investment in Tula Technology, which develops software that provides cost-efficient, fuel economy gains in cylinder deactivation technology.

Delphi said it will sell its reception systems business, which makes automotive antennas and in-vehicle TV tuners, to Chinese automotive supplier Northeast Industries Group Corp.

The company did not reveal terms of the four transactions.

 

reuters.com