TE Connectivity acquiring harsh-environment connector manufacturer for $2 billion
Deutsch Group SAS expects to generate $670 million in revenue this year.
TE Connectivity announced that it has entered into negotiations to acquire harsh-environment connector manufacturer Deutsch Group SAS for approximately US$2 billion. "The proposed acquisition will enable TE to provide a wide range of industry-leading connectivity products for harsh environment applications," the company said in a release announcing the negotiations.
The announcement also stated that Deutsch is expected to generate revenues of approximately $670 million in 2011.
Tom Lynch, TE Connectivity's chief executive officer, said, "Deutsch is an outstanding company with a long history of leadership in providing custom-engineered connectivity products for harsh environment industrial applications. The acquisition of Deutsch is a major step in executing our vision to provide the most complete range of connectivity solutions for our customers worldwide. The complementary nature of the products provided by our two companies will enable us to better serve customers in key industries ... With our global reach and scale, we expect to expand the growth of Deutsch's products. This, combined with the opportunity for operating efficiencies and tax synergies, will enable us to deliver significant value for our shareholders."
Deutsch minority shareholder and chairman of the board Jean-Marie Painvin said, "With this transaction, our companies will bring together two of the most trusted brands in the connector business ... I am very happy to see that TE's offer respects the skills and expertise of men and women who every day write the history of Deutsch."
Deutsch's president and chief executive officer Bertrand Dumazy added, "The combination of our two companies will allow Deutsch to join a large global organization with a very good reputation in the connectivity industry. The very strong complementary positioning of our teams, our operations, our technologies and our products will allow us to improve our commercial position from a geographic standpoint as well as in serving customers."