MAHLE to Acquire Delphi Thermal Management Division
Feb. 19, 2015—MAHLE has signed a definitive agreement to acquire the wholly owned thermal business of U.S. automotive supplier Delphi Automotive PLC.
In 2014, the Delphi division and its approximately 7,600 employees achieved annual sales of about $1.2 billion. After approval by relevant antitrust authorities, a closing of the deal is anticipated in the fall of 2015. MAHLE also intends to acquire Delphi Thermal's joint venture in China.
The takeover supports the strategic expansion of the important thermal management growth sector within the MAHLE Group.
The goal is to integrate the 13 Delphi plants in Europe (Poland, Slovakia, Hungary), North and South America (U.S., Mexico, Brazil), and Asia (China, India), as well as development centers in the USA and Luxembourg, into the global MAHLE Group organization.
"With the acquisition of Delphi's thermal management division, we will reinforce our commitment in this promising field," Prof. Heinz K. Junker, chairman of the MAHLE Group's management board and CEO, said in a release. "On the one hand, we will extend our production footprint in Europe, North America and Asia. On the other hand, we will strengthen our product range and systems competence—particularly with air conditioning compressors, which are already economically significant in today's global automotive industry. This step represents an important strategic progression for MAHLE."