BY Richard Summerfield
Toronto-based manufacturer ABC Technologies has announced a deal to acquire TI Fluid Systems for $1.32bn.
Under the terms of the deal, shareholders of TI Fluid Systems will receive 200 pence per share, valuing TI Fluid Systems at an enterprise value of approximately £1.83bn.
The acquisition is currently expected to complete in the first half of 2025, subject to shareholder and other relevant legal and regulatory approvals. ABC Technologies is backed by Apollo Global Management, which acquired 51 percent of the Canadian manufacturer’s shares in April 2021.
“This transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth,” said Terry Campbell, president and chief executive of ABC Technologies. “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 organizations that have proven capabilities to further ABC’s success story.”
“TI Fluid Systems is a market-leading business, renowned for its exceptional people, innovative products, blue-chip customer base, and long-term growth potential,” said Tim Cobbold, chair of TI Fluid Systems. “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.”
According to a statement announcing the deal, both companies anticipate that the merger will unlock significant value and drive innovation in the rapidly evolving automotive industry. With more than 11,000 employees, ABC Technologies manufactures and supplies custom, highly-engineered, technical plastics to the North American light vehicle industry. TI Fluid Systems is a market leading global manufacturer of thermal and fluid system solutions for a full range of current and developing vehicle architectures. The deal will significantly expand ABC’s global footprint as TI Fluid Systems operates in 27 countries, serving all major automotive manufacturers.
The initial deadline for the sale offering was postponed to 22 November at the request of ABC Technologies. On Thursday last week, the company asked for a further extension “to allow the financing and other arrangements to be finalised”. The company added that it “has substantially completed its due diligence” and was reconfirming the possible offer price.
News: Canada's ABC Technologies to buy British firm TI Fluid for $1.32 bln