ABC Technologies has struck a deal to acquire London-listed British manufacturer TI Fluid Systems for £1bn, after its initial offers were turned down. The Canadian firm, supported by Apollo Global Management, had made an unsuccessful bid for TI Fluid in September, which was rebuffed as the British company deemed it "significantly undervalued".
The original proposal on September 4 priced TI Fluid Systems at 176p per share, but the new agreement entitles each shareholder to 200p in cash per share, as reported by .
This acquisition places the value of TI Fluid's entire issued and to be issued ordinary share capital at just over £1bn on a fully diluted basis, with an implied enterprise value of around £1.8bn.
As a leading global manufacturer of fluid systems and thermal management solutions, TI Fluid is seen by ABC as an opportunity to broaden its global presence, customer base, and enhance its market position. Tim Cobbold, chair of TI Fluid Systems, commented on the deal: "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 -term growth."
He commented 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 plan to officially recommend that shareholders vote for the proposal at the upcoming general meeting, which is slated for Q1 of 2025. Terry Campbell, President and CEO of ABC Technologies observed, "this transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth."
He continued by emphasizing their commitment to aligning with organizations possessing proven capabilities that can contribute to the success story of ABC Technologies.
