Gillingham, England , July 30, 2015 – 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.”
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.
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.
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.
About HellermannTyton
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.
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.
Forward Looking Statements are omitted