Delphi Automotive plans to acquire a FCI Group unit from Bain Capital worth $958 million, part of its strategy to open more acquisitions.
Rodney O’Neal, Delphi Chief Executive Officer, said the company was open to spend as much as $1 million for an acquisition, and is considering the possibility of buying back shares, paying dividends and funding the growth of the business.
“We’ll look at a multitude of ways to get cash and value back to the shareholders and acquisitions are just one,” O’Neal said. “That’s still possible but there is nothing currently on the radar screen. It’s possible, but unlikely.”
The recently acquired unit, which produces electrical connectors, is expected to add 24 cents a share to 2013 earnings. The Motorized Vehicles Division Unit, with revenue of 692 million euro, will be included in Delphi’s electronic and electrical architecture unit, with revenue of $2.93 billion in 2011. O’Neal also declared that Delphi expects savings from the new acquisition of $50 million in 2013, $70 million in 2014 and $80 million by 2015.
“This is a rare opportunity,” O’Neal said on the call. “You don’t catch assets like this in this space.”