23 hours Ago By Maria Ward-Brennan
ABC Technologies has reached an agreement to buy London-listed British manufacturer TI Fluid Systems for £1bn, following previous rejected proposals. Canadian rival ABC, which is backed by Apollo Global Management, proposed to buy TI Fluid back in September, but was rejected after the British company concluded the offer was “significantly undervalued “. That offer made on 4 September, valued TI Fluid Systems at 176p a share, however, under the new terms of the acquisition, each TI Fluid Systems shareholder will be entitled to receive 200p in cash for each share.
The acquisition values TI Fluid entire issued, and to be issued, ordinary share capital at slightly over £1bn on a fully diluted basis and implies an enterprise value of approximately £1.8bn. TI Fluid is the leading global manufacturer of fluid systems and thermal management solutions.
ABC said it’s keen for the acquisition as with TI Fluid’s it can expand it global footprint, customer base and improved its market position. Commenting on this announcement, Tim Cobbold, chair of TI Fluid Systems said: “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.” He added that the 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.
” TI Fluid directors intend to recommend unanimously that its shareholders vote in favour of the scheme at the general meeting expected to occur during the Q1 of 2025. Terry Campbell, president and chief executive of ABC Technologies noted that “this transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth.” “We will be persistent in seeking alignment with organisations that have proven capabilities to further ABC Technologies’ success story,” he added.
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