Auto parts maker TI Fluid Systems PLC (LSE:TIFS) has agreed to a £1 billion all-cash acquisition by ABC Technologies, the global plastics manufacturer owned by US asset manager Apollo.
Under the offer, TI Fluid shareholders will receive 200p per share, representing a 54.5% premium to the volume-weighted average price leading up to September 13, when the offer period commenced.
TI Fluid’s chair Tim Cobbold remarked: “TI Fluid Systems is a market-leading business, renowned for its exceptional people, innovation, customer base, and long-term growth potential.
“The acquisition by ABC Technologies brings together two strategically complementary businesses, creating a unique opportunity to significantly accelerate TI Fluid Systems' strategic development.”
The deal follows an extended period of negotiations comprising no less than five offers tabled by ABC.
Some analysts, including investment bank Jefferies, still believe the 200p offer undervalues TI Fluid.
In the financial year ending 31 December 2023, TI Fluid brought in approximately £2.9 billion in sales and delivered £69.5 million in profit before tax.
Shares in the business bounced 3% higher to 195p this Friday.