Mahle acquires thermal management division of US automotive supplier Delphi
Mahle has signed a definitive agreement to acquire the wholly-owned thermal business of US automotive supplier Delphi Automotive plc. In 2014, the division and its approximately 7,600 employees achieved annual sales of around $1.2 billion (roughly 1.0 billion euros). After approval by the relevant antitrust authorities, a closing of the deal is anticipated for the fall of 2015. Further, it is intended to acquire the joint venture of Delphi Thermal in China. Mahle said the takeover supports the strategic expansion of the important thermal management growth sector within the Mahle Group.
Delphi Thermal is represented in all regions of the world. Its product portfolio, ranging from HVAC modules and air conditioning compressors to cooling components, complements Mahle’s existing thermal management activities. The identically named Mahle business unit, which was formed in connection with the majority acquisition of the Behr Group in 2013, will thus be in an even stronger position to serve the automotive industry as its global systems partner. Furthermore, the air conditioning compressor technology will round out Mahle’s thermal management product range.
Mahle’s 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 the development centres 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. 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,” says Prof. Heinz K Junker, chairman of the management board and CEO. Dr. Jörg Stratmann, head of the thermal management business unit and member of the management board of the Mahle Group, adds: “Mahle will greatly strengthen its competitive position in the area of thermal management as a result of this acquisition.”
“Under Mahle ownership, Delphi Thermal will be a leading systems supplier in the thermal industry, better positioned to serve customers with a global footprint and industry-leading technology portfolio,” said Rodney O’Neal, Delphi chief executive officer and president. “The business is a good strategic fit for Mahle, which will benefit our Thermal customers and our Thermal employees.”