ABC Technologies to Acquire TI Fluid Systems in £1bn Deal

ABC Technologies announced Friday that it has agreed on a deal to acquire TI Fluid Systems (LON: TIFS) for approximately £1 billion.

Under the agreed terms, shareholders of TI Fluid Systems will receive 200 pence per share in cash, reflecting a premium of 54.5% over the 90-day average share price prior to the deal's announcement.

The transaction values TI Fluid Systems' fully diluted equity at £1.039 billion and its enterprise value at £1.831 billion.

The acquisition aligns with ABC Technologies' strategy to strengthen its global footprint and expand its product offerings.

TI Fluid Systems, a leading provider of fluid and thermal management systems for vehicles, is expected to complement ABC's expertise in plastic automotive components.

Together, the companies are aiming to create a more diversified and competitive operation serving a broad customer base, including top automotive manufacturers.

Tim Cobbold, Chair of TI Fluid Systems, highlighted the strategic benefits of the merger, noting it will “accelerate TI Fluid Systems' strategic development” and provide shareholders with an attractive cash return amidst uncertain market conditions.

The acquisition is expected to be completed in the first half of 2025. Both companies anticipate that the merger will unlock significant value and drive innovation in the rapidly evolving automotive industry.

“The combination will result in a larger, more diversified business with a broader range of products and customers, better positioned to navigate the current challenges facing the automotive industry and deliver sustainable long-term growth,” added Cobbold.

Terry Campbell, President and Chief Executive Officer of ABC Technologies, said: “This transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth.