Truck and auto component maker Delphi Automotive has entered into exclusive talks to acquire a unit of FCI Group from Bain Capital for about 764 million euros ($958 million), Bloomberg reported.
CEO Rodney O’Neal previously said Delphi was willing to spend as much as $1 billion on an acquisition. Delphi had $1.4 billion cash on hand at the end of March, listing share buybacks as another use for that cash, Bloomberg said.
Acquiring the FCI Group unit would make Delphi a strong No. 2 in what is a fragmented market for connectors, O’Neal said on a conference call with analysts and investors.
Delphi announced the negotiations about one week after Eaton Corp., another trucking supplier, announced an $11.8 billion agreement to buy Cooper Industries, a maker of lighting products.
The FCI unit, which makes electrical connectors used in heavy trucks as well as light vehicle applications, is known as the Motorized Vehicles Division. Its revenue last year was 692 million euros, according to Bloomberg.
The FCI unit would become part of Delphi’s electrical and electronic architecture unit, which had revenue of $2.93 billion last year.
