MAHLE acquires Delphi thermal management
Germany-based MAHLE has agreed to buy the thermal business of Delphi Automotive PLC for approximately $727 million.
After approval by relevant antitrust authorities, the deal is anticipated to close in the third quarter of 2015. MAHLE also intends to acquire Delphi Thermal’s stake in Shanghai Delphi Automotive Air-Conditioning System Co. Ltd. in a separate transaction.
Delphi Thermal makes HVAC modules, air conditioning compressors, and cooling components. The goal is to integrate the 13 Delphi plants in Europe (Poland, Slovakia, Hungary), North and South America (USA, Mexico, Brazil), and Asia (China, India), as well as development centers in the USA and Luxembourg, into the global MAHLE Group organization.
MAHLE’s existing thermal management activities include the 2013 majority acquisition of the Behr Group.
According to MAHLE officials, comprehensive thermal management systems will play an increasingly significant role for all potential drive systems of the future – combustion engines, electric drives, batteries, power electronics, and fuel cells.
Rodney O’Neal, Delphi’s CEO and president says, “The transaction positions Delphi with a more focused, high-growth product portfolio that addresses the trends of safe, green, and connected.”
Prof. Heinz K. Junker, MAHLE chairman of the management board and CEO, remarks, “The transaction extends our production footprint in Europe, North America, and Asia, and further strengthens our product range and systems competence – particularly with air conditioning compressors.” www.delphi.com; www.mahle.com
PolyOne expands metal replacement technologies capacity
PolyOne Corp. is expanding capacity for its OnForce LFT long-fiber specialty thermoplastics. A new, dedicated specialty production line has been added at the company’s existing Avon Lake, Ohio, production facility and is already fully operational.
PolyOne’s glass- and carbon fiber-filled formulations are designed to retain aesthetic appeal in metal replacement and structural applications, while also offering higher stiffness, impact strength, and higher surface finish than short-fiber filled materials. www.polyone.com
GM to buy back $5B in stock, avoid proxy fight
General Motors Co. officials have agreed to repurchase $5 billion of company stock, heading off a proxy bid by investment groups led by Harry J. Wilson. Wilson had asked the join GM’s board of directors to push for an $8 billion stock repurchase.
GM CEO Mary Barra says, “GM is moving ahead with its comprehensive capital allocation framework, and constructive dialogue with our shareholders has helped ensure that we are addressing these key initiatives with the appropriate level of clarity and transparency.”
Wilson has agreed to withdraw his candidacy to the board.
“(The) announcement by General Motors represents the culmination of a constructive dialogue between our investor group, senior management, and the board,” Wilson says. “We have arrived at a win-win outcome that includes a thoughtful approach to critical capital allocation issues and other important measures to increase long-term shareholder value.”
Wilson had the backing of four large investment funds for his board bid: Taconic Parties, Appaloosa Parties, HG Vora Parties, and the Hayman Parties, which together own approximately 31.2 million shares, or approximately 1.9%, of GM stock. Wilson would have received a portion of the group’s profits from had he won the GM board seat.
In supporting Wilson’s bid, officials with Short Hills, N.J.-based Appaloosa Management LP had called Wilson’s proposal the “best means of enhancing shareholder value and addressing an excess accumulation of unproductive cash on its balance sheet.”
Appaloosa officials say they’d had discussions with GM’s management team, including what they saw as a need for greater discipline and efficiency in allocating capital, the lack of transparency in executive compensation, and whether it properly incented effective capital deployment.
Barra says GM’s board has set a $20 billion cash balance target for the automaker, a level that should ensure investment-grade bond ratings.
“As we continue to execute on our plan to become the most valued automotive company, our track record of improved operating performance, strong earnings momentum, and disciplined capital investments provide the foundation for a comprehensive capital allocation framework,” Barra says. “We will continue to invest in innovative technologies and world-class vehicles that will deliver sustained profitable growth and maximize returns to shareholders.” www.gm.com; www.amlp.com
Remy Int’l to acquire Maval Manufacturing
Pendleton, Indiana-based Remy International Inc. has agreed to acquire substantially all assets of Maval Manufacturing Inc., a Twinsburg, Ohio manufacturer, remanufacturer, and distributor of steering systems, components, and specialty products to the automotive service, original equipment power sports, and off-road specialty vehicle markets.
The transaction, subject to customary closing conditions, was expected to close in the first quarter of 2015.
“We are continuing to expand our portfolio beyond our core rotating electrics products into high-quality multilines with growth potential,” says Remy President and CEO Jay Pittas. “Maval is a perfect fit for us: a well-managed, resourceful, profitable company with quality products that can stand on its own. We can help them grow and increase their distribution.”
Maval will retain its brand identities for its core products as well as the Unisteer and Wicked Bilt lines.
“This is the right strategic option for us and we are all excited to partner with Remy,” John Dougherty, Jon Statler, and Dale Lumby, the founders of Maval, jointly comment regarding the acquisition.
They add, “We want to continue to build on our organic growth and Remy gives us the capital base and the resources to further expand our existing platform.” www.remyinc.com; www.mavalgear.com