GILLINGHAM, England--(BUSINESS WIRE)--
Delphi Automotive PLC (NYSE: DLPH) today announced that it has entered
into a definitive agreement to sell its wholly-owned thermal business to
MAHLE GmbH for cash consideration of approximately $727 million, subject
to closing adjustments, which represents an implied EV/LTM EBITDA
multiple of approximately 9.5x. The transaction is expected to close in
the third quarter of 2015, subject to regulatory approvals. Proceeds
from the transaction will be used to fund growth initiatives, including
acquisitions and share repurchases.
Delphi and MAHLE also signed a separate letter of intent to sell
Delphi’s stake in Shanghai Delphi Automotive Air-Conditioning System
Co., Ltd. Proceeds from this transaction will be in addition to the $727
million paid for the wholly-owned operations.
“This agreement represents a great outcome for both Delphi and our
Thermal division,” said Rodney O’Neal, Delphi’s chief executive officer
and president. “The transaction positions Delphi with a more focused
high-growth product portfolio that addresses the trends of safe, green
and connected. The acquisition of the business by MAHLE, a leading
global supplier of thermal systems, ensures continued industry-leading
service to our customers and stability for our employees.”
Delphi’s Thermal division had 2014 revenues of $1.6 billion, with
approximately 6,700 employees and 13 plants globally. The results of
operations of the Thermal division business will be reported as
discontinued operations beginning in the first quarter of 2015.
“The acquisition of Delphi’s Thermal division enhances our good position
in the thermal market,” said Prof. Heinz K. Junker, MAHLE chairman of
the Management Board and chief executive officer. “The transaction
extends our production footprint in Europe, North America, and Asia and
further strengthens our product range and systems
competence—particularly with air conditioning compressors. This step
represents the continued strategic progression for MAHLE.”
Added O’Neal: “Under MAHLE ownership, Delphi Thermal will become part of
a leading systems supplier in the thermal industry, better positioned to
serve customers with a global footprint and industry-leading technology
portfolio. The business is a good strategic fit for MAHLE, which will
benefit our Thermal customers and our Thermal employees.”
Barclays is serving as Delphi’s financial advisor and Latham & Watkins
LLP is serving as its legal counsel.
About Delphi
Delphi Automotive PLC (NYSE: DLPH) is a leading global supplier of
technologies for the automotive and commercial vehicle markets.
Headquartered in Gillingham, U.K., Delphi operates major technical
centers, manufacturing sites and customer support services
in 33 countries. Delphi delivers innovation for the real world with
technologies that make cars and trucks smarter and safer as well as more
powerful and efficient. Visit www.delphi.com.
Source: Delphi Automotive PLC