Canada (Commonwealth) _ This week, TI Fluid Systems became the most recent significant British company to enter into an acquisition agreement with a foreign business.
The auto parts supplier announced that it has agreed to a £1 billion bid from rival Canadian company ABC Technologies, which produces fuel tanks, door panels, and defrosters for some of the biggest automakers in the world.
According to ABC, the acquisition would increase the company’s footprint and product line in key automotive markets in Asia, Europe, and the Americas.
As per the agreement, investors in TI will get 200 pence per share, which is 47.3% more than the closing share price of 135.8p on September 12, the last day before the current offer period started.
TI rejected both of ABC’s unsolicited approaches for the company earlier this summer, claiming they were too cheap. The bids were for 165p and 176p per share, respectively.
Last week, the City’s Takeover Panel extended ABC’s offer deadline for the Oxford-based firm to today at 5 p.m. Both businesses anticipate the transaction’s completion in the first half of 2025, if approved by TI shareholders who control at least three-quarters of the votes.
The expanded company would be better equipped to handle the present difficulties facing the automotive sector and provide long-term, sustainable growth, according to Tim Cobbold, chairman of TI Fluid Systems.
He continued by stating that the offer represents a competitive premium, providing shareholders with the assurance of an upfront payment that accounts for broader industry risks while also reflecting TI Fluid Systems’ core strengths and opportunities.
Although TI was formally established in 2000, its origins can be discovered in the Bundy Corporation, which was established in 1922 and provided fuel lines for the Ford Model T. Only a day after the waste management firm Renewi accepted an offer of £700 million from Australian asset manager Macquarie, TI announced its takeover.
Additionally, Loungers, the operator of Cosy Club, accepted a £351 million offer from Fortress Investment Group, the owner of Majestic Wines. London-listed companies often become desirable takeover targets due to their perceived undervaluation compared to their international counterparts.
This year, foreign ownership has taken control of cybersecurity expert Darktrace, video game service company Keywords Studios, and music rights entrepreneur Hipgnosis Songs Fund.
International Distribution Services, the owner of Royal Mail; Britvic, a soft drink manufacturer; and investment platform Hargreaves Lansdown have also completed billion-pound buyout agreements.
Dan Coatsworth, AJ Belpined’s investment analyst Similar to numerous other takeover targets in recent years, TI Fluid failed to pique investors’ interest and traded at a price that made it open to an offer.
Since 2022, the shares of TI Fluid have fallen below eight times the 12-month forecast earnings, putting the company in a low-value position. It would not be long before someone devoured it. Late Friday afternoon, shares in TI Fluid Systems were up 1.8% at 192.6p.
The multinational British corporation TI Fluid Systems develops, manufactures, and supplies automotive fluid storage, carrying, and delivery systems. The company’s Bundy, Walbro, and Marwal brands cater to the automobile aftermarket.
The company’s headquarters are located in Oxford, England, and its corporate offices are located in Auburn Hills, Michigan, in the United States. The London Stock Exchange lists it and it is a part of the FTSE 250 Index.
Fuel tank systems and fluid-carrying systems (brakes, battery cooling, and climate control) make up the company’s two divisions. ABC Technologies is a world leader in the production of automotive systems and components.
Established in 1974, ABC Technologies brings extensive experience to meet all our clients’ needs for plastics processing technologies, systems, and components. We offer comprehensive support, services, and cutting-edge research and development that are customized to meet the unique demands and requirements of our clients.
We are skilled in fluid handling, HVAC distribution systems, adjustable products, interior and exterior systems, and air induction systems.
What makes ABC Technologies unique is the way we take goods from concept to manufacturing. Faster development, more design flexibility, enhanced manufacturing and assembly efficiencies, and significant savings on expenses without compromising quality and performance are all made possible by our in-house internal research and development, components, design, testing, machinery, machines, analyzing technologies, and secondary assembly systems.
