ABC secures TI Fluid Systems in £1bn deal

(Sharecast News) - UK engineer TI Fluid Systems has agreed to be taken over in a deal worth more than £1bn, it was announced on Friday. The FTSE 250 company said it had accepted a 200p per share offer from Canadian rival ABC Technologies, valuing it at £1.04bn.

The firm, a specialist designer, manufacturer and supplier of fluid systems for cars, called the deal a "unique opportunity".

Apollo Global Management-backed ABC was rebuffed twice before making the improved 200p offer in October. It represents a 52% premium to the share price at the time of the approach.

Terry Campbell, chief executive of ABC, said: "This transaction is a transformative strategic opportunity which unlocks value for all of our stakeholders and provides a platform for further growth."

Tim Cobbold, chair of TI Fluid Systems, said: "The acquisition brings together two strategically complementary businesses, creating a unique opportunity to significant accelerate TI Fluid Systems' strategic development.

"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."

The company acknowledged the "significant disruption" that was affecting the global automotive industry, which had hit its European OEM customers.

The deal is expected to complete during the first half of 2025.