Delphi has entered exclusive negotiations to acquire the automotive connection systems business of FCI Group from investment company Bain Capital.
FCI is a leading maker of high-performance interconnection systems. The Motorized Vehicles division (MVL) had 2011 revenue of 692 million euros.
Delphi is offering to pay 765 million euros for the operations, which will become part of the US automotive supplier’s electrical/electronic architecture segment once the transaction is completed. Closure is expected by year end.
“The addition of MVL strengthens the high growth connector product portfolio of our E/EA segment, broadens our mix of global customers and furthers our strategy of providing our customers with solutions to address the trends of safe, green and connected,” said Delphi CEO Rodney O’Neal.
He added that the acquisition will help position Delphi better in the market for electric vehicle components.
Delphi said the addition of MVL will also give it more business with high-growth customers. And it specifically cited a bigger footprint in Asia and the addition of a “significant manufacturing and engineering presence in China, India and Korea” as benefits.