LONDON — The auto parts supplier Delphi Automotive said on Thursday that it had agreed to acquire HellermannTyton Group, a British maker of electronic cable equipment, for 1.07 billion pounds, or about $1.7 billion.
The deal is expected to complement Delphi’s existing business of providing electronics components to the auto industry and to enhance its business in Asia, where HellermannTyton has a 15 percent to 20 percent growth rate, the companies said.
More than half of HellermannTyton’s sales in 2014 were to the automotive industry and its suppliers.
HellermannTyton shareholders would receive 480 pence a share in cash, representing a 44.5 percent premium to its closing price on Wednesday.
“With consumers now demanding more connectivity in their vehicles, electrical architecture is the enabler to that added vehicle content,” Kevin P. Clark, the Delphi president and chief executive, said in a news release.
Shares of HellermannTyton rose 41.9 percent to 471.30 pence in early trading in London on Thursday.
HellermannTyton, which is based in Crawley, England, was founded in 1933 and manufactures wire ties, insulation products, cable protection systems and connectors for electronics. It posted revenue of 596.9 million euros, or about $659 million, in 2014 and employs more than 3,800 people.
The transaction is subject to shareholder approval, and it is expected to close by the end of the year.
The HellermannTyton board of directors intends to unanimously recommend that shareholders accept the offer, the companies said.
“We believe that the offer from Delphi provides HellermannTyton shareholders with a value which is highly attractive,” David Newlands, the HellermannTyton chairman, said in a news release.
To read more at: http://www.nytimes.com/2015/07/31/business/dealbook/delphi-automotive-agrees-to-buy-hellermanntyton-for-1-7-billion.html?_r=0
The deal is expected to complement Delphi’s existing business of providing electronics components to the auto industry and to enhance its business in Asia, where HellermannTyton has a 15 percent to 20 percent growth rate, the companies said.
More than half of HellermannTyton’s sales in 2014 were to the automotive industry and its suppliers.
HellermannTyton shareholders would receive 480 pence a share in cash, representing a 44.5 percent premium to its closing price on Wednesday.
“With consumers now demanding more connectivity in their vehicles, electrical architecture is the enabler to that added vehicle content,” Kevin P. Clark, the Delphi president and chief executive, said in a news release.
Shares of HellermannTyton rose 41.9 percent to 471.30 pence in early trading in London on Thursday.
HellermannTyton, which is based in Crawley, England, was founded in 1933 and manufactures wire ties, insulation products, cable protection systems and connectors for electronics. It posted revenue of 596.9 million euros, or about $659 million, in 2014 and employs more than 3,800 people.
The transaction is subject to shareholder approval, and it is expected to close by the end of the year.
The HellermannTyton board of directors intends to unanimously recommend that shareholders accept the offer, the companies said.
“We believe that the offer from Delphi provides HellermannTyton shareholders with a value which is highly attractive,” David Newlands, the HellermannTyton chairman, said in a news release.
To read more at: http://www.nytimes.com/2015/07/31/business/dealbook/delphi-automotive-agrees-to-buy-hellermanntyton-for-1-7-billion.html?_r=0
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