Private equity company Bain Capital LLC has moved to put an end to months of rumor and speculation by agreeing to purchase global fuel systems supplier TI Automotive under undisclosed terms.
Though the terms of the deal remain tightly wrapped under secrecy, sources that spoke under condition of anonymity with Bloomberg say the transaction has totaled $2.4 billion. That means Bain has pledged to offer around six times earnings before interest, taxes, depreciation and amortization (known in financial terms as Ebitda), according to the people, who declined to share their identity until the information becomes public – with TI’s Ebitda at around $400 million. The negotiations between Bain and TI started more than a year ago – with initial reporting from Bloomberg claiming the deal would have been finalized last January and with TI valued at more than $2 billion. The owners of TI – other hedge funds – last year dragged the deal to have time to weigh a rival offer of around $2 billion from Pamplona Capital Management LLP, according to sources speaking at the time.
According to the people, the leaders – among them Oaktree and Duquesne Capital Management LLC – decided to postpone last year’s acquirement procedure in order to negotiate a higher price. Now, Frank Buscemi, global communications director for TI Automotive, which is headquartered in suburban Detroit, said that the settlement has no effect on the current executive team, headed by chief executive officer Bill Kozyra. With the deal still subject for approval from TI Automotive’s shareholders, the closing is not expected until the latter half of the year.
Via Automotive News