Delphi Acquires Grundig Car InterMedia System GmbH
Monday November 17, 8:11 am ET
Grundig unit will boost Delphi European sales and expand portfolio in growing electronics segment with regional engineering and manufacturing
biz.yahoo.com
NUREMBURG, Germany, Nov. 17 /PRNewswire/ -- Delphi Corporation (NYSE: DPH) announced today that it has acquired Grundig Car InterMedia System GmbH, a wholly-owned subsidiary of Grundig AG, for approximately 58 million euros ($67 million dollars US). The purchase price includes 55 million euros in cash for the stock of the company and assumption of the net debt of the business.
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Grundig Car InterMedia System is a full line producer of vehicle audio systems, telematics devices and other vehicle entertainment products primarily for the European automotive original equipment and aftermarket segments. The business employs 1,000 people and had sales of approximately 180 million euros in 2002. Its engineering and commercial activities are located in Nuremburg, Germany with production operations in Braga, Portugal.
"With this acquisition, Delphi will significantly boost our European electronics sales, strengthen customer relationships and achieve synergy savings through integration," said J.T. Battenberg III, chairman, CEO and president of Delphi Corporation. "Our European engineering and manufacturing organization is significantly expanded, enhancing our capability to provide local engineering and manufacturing support for key customers in the region. Further, the financial results of the integrated business will be accretive to Delphi's earnings in the first full year of operation."
Delphi has identified the Infotainment market segment as a key technology and sales growth driver for the company. The well-known and respected Grundig brand opens new doors for Delphi's expansion in this growing market segment.
"With the breadth of our combined product portfolio, we can now place an even more impressive range of products into the OEM, aftermarket and consumer electronics channels," said Battenberg.
Today, Grundig branded products include OEM and aftermarket audio systems with MP3 and CD playback, and DVD rear seat entertainment products. GCIS also provides telematics technologies for automotive and commercial applications. Delphi has a broad-based portfolio of automotive audio, entertainment, navigation and telematics products. Delphi also offers commercial vehicle communications, fleet productivity and fleet security technologies including hardware and management systems. The company is also a leading provider of audio and entertainment products for the automotive aftermarket and consumer electronics segments, including satellite radio, personal navigation and rear- seat entertainment systems.
"We are very excited to gain new technical, customer, market and manufacturing expertise as we welcome the GCIS management and workforce into the Delphi organization," said Jeffrey J. Owens, president of Delphi Delco Electronics Systems.
"We are thrilled with the opportunity to expand our leading edge consumer electronics product portfolio in Europe, said Francisco A. (Frank) Ordonez, president, Delphi Product & Service Solutions. "Expanding our offerings to meet our customers' expectations for additional high tech quality products fits well with our growth plans in Europe." |
