Delphi Automotive is expanding its global reach and its ability to make electronic connectors for vehicles by buying FCI Group's motorized vehicles division for 765 million euros ($959.4 million), the companies announced Thursday.
The deal is expected to close by the end of 2012.
The motorized vehicle business of FCI, which is based in the U.K., makes auto connection systems and generated revenue of 692 million euros ($867.8 million) in 2011. It is owned by affiliates of Bain Capital.
The deal will expand Delphi's existing connector business with more capacity to make items for safety restraint systems and powertrains, and it will increase Delphi's global reach, the companies said in a statement. Delphialso makes transmission controls, heating and air conditioning systems and other components.
"This transaction will solidify Delphi's position as one of the premier global automotive suppliers and will create significant shareholder value," Rodney O'Neal, chief executive officer and president of Delphi, said in the statement.
Delphi, based in Troy, Mich., spun off from General Motors Co. in 1999, went into bankruptcy court protection in 2005 and emerged four years later after cutting thousands of jobs and selling factories and businesses.
The company said it expects the deal to add 24 cents per share to its 2013 earnings, excluding acquisition-related costs.
Its shares rose 80 cents, or 2.9 percent, to $28.50 after hours following the announcement. They had ended regular trading at $27.70, down 33 cents.
