US auto parts manufacturer Delphi to buy HellermannTyton for $1.7 bn

US auto parts manufacturer Delphi Automotive yesterday struck a deal to buy British cable equipment maker HellermannTyton Group for about £1.1 billion ($1.7 billion).

Under the terms of the proposed deal, Delphi will pay 480 pence in cash for each HellermannTyton share, a 44-per cent premium to its Wednesday's closing price on the London Stock Exchange.

Delphi expects to fund the deal through new debt facilities and existing cash resources.

HellermannTyton is a global manufacturer and supplier of high performance and innovative cable management solutions for fastening, identifying, insulating, protecting, organising, routing and connecting components in electrical, automotive and datacom markets.

Its 12 production facilities are located across ten countries, offering more than 20,000 products in over 70,000 SKUs.

It sells its products in the EU, the US, Japan, China and Brazil, as well in other emerging markets like China.

HellermannTyton has 3,808 employees and posted revenue of €597 million in 2014 and €538 million in 2013.

Gillingham, UK-based Delphi is one of the largest vehicle component manufacturers providing electrical and electronic, powertrain and active safety solutions to the global automotive and commercial vehicle markets.

Its customers include all of the 25 largest automotive OEMs and operate 129 manufacturing facilities and 15 major technical centres. It has a presence in 33 countries and has over 20,000 employees.

Delphi had revenue of $17 billion in 2014 and $16.5 billion in 2013.

Commenting on the deal, Kevin Clark, president & CEO of Delphi, said, ''We are pleased to have reached this agreement with HellermannTyton, which will uniquely position Delphi to meet customer demand for customised cable management solutions and capitalise on additional growth opportunities in electrical architecture content.''

''HellermannTyton positions Delphi to provide customers with an even broader portfolio of highly engineered and customized connection systems and cable management solutions. By leveraging the combined capabilities of both companies, we will be able to capitalise on additional growth opportunities and create significant value for our customers and shareholders,'' he added.