LONDON: ABC Technologies has reached agreement on the terms and conditions of a recommended all cash acquisition of the entire issued, and to be issued, ordinary share capital of TI Fluid Systems at the rate of 200 pence in cash per share.
The acquisition values TI Fluid Systems’ entire issued, and to be issued, ordinary share capital at approximately £1.039 billion on a fully diluted basis and implies an enterprise value of approximately £1.83 billion.
ABC Technologies believes that TI Fluid Systems represents a compelling opportunity to acquire a leading global manufacturer of fluid systems and thermal management solutions that is strategically and culturally complementary to ABC Technologies, and will benefit stakeholders across employees, customers and suppliers.
Headquartered in Toronto, Ontario, Canada, ABC Technologies is a leading global manufacturer and supplier of custom, highly-engineered technical plastics, components, systems and light-weight innovations to the global automotive industry.
TI Fluid Systems is a global innovator of thermal and fluid system solutions for the full range of current and developing vehicle architectures.
Serving all major automotive manufacturers, with more than 100 years of automotive supply experience; TI Fluid Systems operates across 27 countries with a commitment to improving efficiency, performance and sustainability worldwide.
Tim Cobbold, the Chair of TI Fluid Systems, said: “TI Fluid Systems is a market-leading business, renowned for its exceptional people, innovative products, blue-chip customer base, and long-term growth potential. The acquisition by ABC Technologies brings together two strategically complementary businesses, creating a unique opportunity to significantly accelerate TI Fluid Systems’ strategic development.
The combination will result in a larger, more diversified business with a broader range of products and customers, better positioned to navigate the current challenges facing the automotive industry and deliver sustainable long-term growth.
The TI Fluid Systems Board believes that the offer represents an attractive premium and provides shareholders with the certainty of a cash consideration that reflects TI Fluid Systems’ fundamental strengths and opportunities, while also acknowledging the wider industry uncertainties.
On behalf of the TI Fluid Systems Board, I would like to acknowledge the part played by colleagues throughout TI Fluid Systems to the development of the business and offer my sincere thanks and appreciation for their ongoing commitment and hard work.”
Terry Campbell, President and Chief Executive Officer of ABC Technologies, said: “This transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth. A combined business will enable us to better serve our customers, and I am excited for our teammates as we continue to build a winning future. We will be persistent in seeking alignment with organisations that have proven capabilities to further ABC Technologies’ success story.”
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