TI Fluid Systems agrees to £1bn takeover as London exits accelerate
British manufacturer TI Fluid Systems has waved through a £1bn takeover deal today in the latest in a flurry of takeovers to hit the London Stock Exchange this week.
In a statement to the market today, the Cambridge-based brakes-to-cooling fluid firm said it had agrreed to a deal with Candian rival ABC, which is backed by Apollo Global Management, after previously rejecting a bid in September.
Under the terms of the deal, ABC will pay a 40 per cent premium on TI Fluid’s share price on 12 September, the day before speculation began over a potential acquisition.
The deal values TI Fluid at slightly over £1bn and shareholders will be entitled to 200p in cash for each share.
It marks the latest in a flurry of take-private deals this week after bar chain owner Loungers waved through a £338m takeover by US investment group Fortress yesterday. The two deals have now pushed the total value of takeovers of London Stock Exchange firms to beyond £50bn.
Takeovers of London Stock Exchange-listed firms (£bn)
TI Fluid is the leading global manufacturer of fluid systems and thermal management solutions. ABC said it is looking to expand its global footprint, customer base and improved its market position through the deal.
Tim Cobbold, chair of TI Fluid Systems said the tie-up will result in a “larger, more diversified business with a broader range of products and customers”.
He added that the board “believes that the offer represents an attractive premium and provides shareholders with the certainty of a cash consideration that reflects TI Fluid Systems’ fundamental strengths and opportunities, while also acknowledging the wider industry uncertainties.”
TI Fluid directors intend to recommend the deal to its shareholders at a general meeting expected to occur in the first quarter of next year.
Terry Campbell, president and chief executive of ABC Technologies noted that “this transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth.”
“We will be persistent in seeking alignment with organisations that have proven capabilities to further ABC Technologies’ success story,” he added.