Delphi announced on July 30 that it has reached an agreement to acquire HellermannTyton Group PLC for $1.85 billion (£1.07). It said HellermannTyton’s board has recommended the transaction. Upon completion of the deal, which Delphi expects to happen late in 2015, HellermannTyton will become part of Delphi’s Electrical/Electronic Architecture segment.
Delphi is a giant in the automotive connectivity business. In a statement, it said the acquisition “expands Delphi’s product portfolio within the connected vehicle solutions market and will help capitalize on the connected car megatrend. It also further strengthens Delphi’s leading position in the electrical architecture market, while providing a platform to grow in HellermannTyton’s adjacent industrial end markets, including aerospace, defense, alternative energy and mass transit.”
Kevin Clark, Delphi’s president and chief executive officer, stated, “With consumers now demanding more connectivity in their vehicles, electrical architecture is the enabler to that added vehicle 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 capitalize on additional growth opportunities and create significant value for our customers and shareholders.”