Wendel wants to sell Deutsch € 1570000000 TE Connectivity

Wendel wants to sell Deutsch € 1570000000 TE Connectivity

French investment company Wendel announced Tuesday night was in exclusive talks to sell to the United TE Connectivity Deutsch subsidiary, specialized in connectors for harsh environments.

Wendel is in exclusive talks to sell its subsidiary Deutsch. For Wendel, net proceeds from the sales amount to € 954 million, said a statement from the French group that anticipates profit of 575 million euros for the assignment. The purchase price will be based on enterprise value of 2.1 billion dollars Deutsch (1.57 billion euros), the statement said.

The operation can be completed in the first half of 2012, once obtained various authorizations. "With the completion of an important added value, this transaction will enable Wendel to build capacity for an ambitious investment policy and to pursue repayment of debt," said Frédéric Lemoine, Chairman of the Board of Wendel.

Founded in California in 1938, Deutsch was acquired by Wendel in June 2006. It employs more than 3,600 people around the world. It anticipates a turnover of $ 670 million in 2011.

Between the acquisition by Wendel and the end of 2011, Deutsch has increased turnover by more than 22% and gross margin (EBITDA) of more than 500 basis points more than 25%.

TE Connectivity, formerly Tyco Electronics, achieved a turnover of $ 14.3 billion during last fiscal year. The group employs around 95,000 people.

Connectivity and TE Deutsch emphasized "mutually complement their products." Deutsch will strengthen especially in the truck market in Europe, the statement said TE Connectivity and benefit from the presence of Deutsch in the field of construction equipment and agricultural machinery. The two companies also hope to strengthen each other in the field of civil and military aviation in Europe and the United States in particular.

Connectivity TE, resulting from the division of the conglomerate Tyco International in 2007, Deutsch believes that the acquisition allows it to increase earnings per share from 20 cents in fiscal 2013, excluding acquisition costs.