Auto-parts maker Delphi Automotive Plc said today it is in “exclusive talks” to acquire a unit of FCI Group from Bain Capital for about 764 million euro ($958 million).
The deal, if completed, would be Delphi’s first acquisition since emerging from Chapter 11 bankruptcy protection in October 2009.
“We’ve looked at this business for a very long time, we know it well,” Delphi Chief Executive Officer Rodney O’Neal said on a conference call.
FCI Group’s motorized vehicles division (MVL), which had sales of 692 million euros last year, counts Delphi as its largest customer.
The deal will expand Delphi’s existing connector business with more capacity to make items for safety restraint systems and powertrains, and it will increase Delphi’s global reach, the companies said in a statement.
Acquiring the FCI Group unit would make Delphi a “strong No. 2” in what is a fragmented market for connectors, O’Neal said yesterday on a conference call with analysts and investors.
“This is a rare opportunity,” O’Neal said on the call. “You don’t catch assets like this in this space.”
Deutsche Bank Securities Inc is serving as Delphi’s financial adviser, while N M Rothschild & Sons Ltd and Goldman Sachs are advising FCI Group.
Delphi shares were up 3 percent at $28.50 in extended trade. They closed at $27.70 on Thursday on the New York Stock Exchange according to Reuters