by Key Takeaways
- TI Fluid Systems will be purchased by ABC Technologies for £1.039 billion in an all-cash deal.
- The 200p per share purchase comes after TI Fluid Systems’ earlier bids were turned down.
- Early 2025 is when completion is anticipated, expanding ABC’s product portfolio and global reach.
The British company TI Fluid Systems will be acquired by Canadian auto parts manufacturer ABC Technologies for £1.039 billion ($1.32 billion) in an all-cash deal.
Prior to ABC’s initial bid in September, TI Fluid Systems’ share price was 54.5% below its 90-day average, and the deal, which was announced on November 29, 2024, valued the company at 200 pence per share.
TI Fluid indicated that it would be willing to suggest a 200p per share offering after turning down bids of 188p and 198p per share in October and offers of 165p and 176p per share in September.
After accounting for the company’s debts, the final agreement values TI Fluid Systems at around £1.83 billion.
With a vote anticipated in the first quarter of 2025, the TI Fluid Systems board has unanimously recommended that shareholders support the purchase. The deal is anticipated to be finalized soon following approval, subject to regulatory clearance.
According to ABC Technologies, the acquisition will broaden its product line and increase its worldwide footprint in the cutthroat automobile industry.
The automobile industry is undergoing a wave of consolidation this year, which coincides with this transaction. In Q2 2024, the largest announced transaction in the worldwide automotive industry was the $923 million majority acquisition of Motional by Hyundai Motor Group, along with its subsidiaries Hyundai Mobis and Kia.
Getting this agreement with ABC Technologies could help TI Fluid become a more resilient and competitive participant in the global automotive industry, while EV sales have stagnated in Europe due to decreased demand.
