Delphi to Acquire Specialty Electronics Inc.
-Acquisition Provides Connection Systems Access to New Markets
biz.yahoo.com
TROY, Mich., May 24 /PRNewswire/ -- Delphi Automotive Systems (NYSE: DPH - news) today announced its intent to purchase Specialty Electronics Inc., for $21.8 million. Specialty is a provider of electronic connector products and customized interconnect solutions to the telecom, computer, industrial electronics, medical and automotive markets. Subject to pending approvals and other conditions, the companies expect to finalize the transaction by the end of May.
(Photo: newscom.com )
When complete, the acquisition will expand Delphi's reach into new markets for connectors and connection systems and strengthen its position as the leading supplier of automotive connection systems. Specialty's capabilities and interconnect technologies will be integrated into the recently established Delphi Connection Systems business.
``Adding Specialty's flexible manufacturing expertise, engineering capabilities and established customer relationships to Delphi's extensive product portfolio, global manufacturing and long-standing connection system experience adds impetus to our rapid growth strategy for connection system business,'' said Kevin Heigel, business line executive, Delphi Connection Systems. ``In a nutshell, this acquisition provides competency, that when coupled with our technologies, will allow us to diversify our market reach.''
The acquisition is expected to be financially accretive in the first full year of ownership, exceeds Delphi's long-term return objectives, and further positions Delphi to profitably grow Delphi Connection Systems' business in the telecom, computer peripherals and medical connection markets.
Connection Systems Business Growth & Customer Diversification
Industry analysts estimate the global connector market will grow from $33.2 billion in 2000, to $46 billion by 2005. Specialty's connector sales totaled approximately $17 million in 2000, and Delphi's were approximately $1.3 billion.
``Delphi is looking forward to the opportunity to work with new customers and companies that are well-respected in their markets,'' Heigel said.
Primary customers of Specialty include Abbott Labs/Medisense, Ademco, Alcatel USA, Apple Computer, Delphi Delco Electronics, Hewlett Packard, Iomega, Pitney Bowes, Research in Motion and Roche Diagnostics.
Stronger Connector Portfolio
Specialty's applications include insert molded connectors for automotive and computer markets, fine pitch connectors for telecom/datacom and medical markets, board level connection devices for computer peripheral and medical markets, I/O connection systems and semi-custom and custom interconnect designs. These products, added to Delphi Connection Systems' high-speed, high-density connectors, 2mm hard metric connectors and fiber optic connectors, offer a solid spectrum of solutions for new markets.
``Specialty has a dynamic entrepreneurial spirit and excellent flexible manufacturing capabilities that we will be able to leverage as we grow into new markets,'' Heigel said. ``As we align Specialty with Delphi Connection Systems, we will maintain these competitive strengths and fast-to-market capabilities, while providing the global manufacturing base and financial support needed for growth.''
Manufacturing and Engineering Footprint
Specialty is a small, agile manufacturing and engineering company, with engineering, manufacturing and sales in Landrum, S.C., manufacturing and sales in Singapore and manufacturing in Mexico. Approximately 180 employees are included in the acquisition.
To learn more about Delphi Connection Systems, log onto delphiconnect.com . For more information about Delphi Automotive Systems, visit Delphi's Virtual Press Room at delphiauto.com . |
