The antitrust authorities have given their approval and MAHLE has acquired the thermal business of U.K. automotive supplier Delphi Automotive PLC as of July 1, 2015. As a result, the Stuttgart-based group is expanding its Thermal Management business unit.
Through the now-completed acquisition, MAHLE said it is increasing its commitment in a promising sector, since a comprehensive, energy-efficient thermal management system is as much in demand for combustion engines as for electric drives or fuel cells.
MAHLE said the product portfolios of both companies are an excellent match with regard to HVAC modules and engine cooling components. MAHLE places particular importance on Delphi Thermal's compressor business, which has thus far been missing from its own range. It will now be rapidly integrated into the group as a new unit. Air conditioning, powertrain cooling, and heat exchangers for stationary applications, however, will become part of the Thermal Management business unit. The thermal business field was created following the acquisition of Behr, which was completed in 2013, and already generated around 40 percent of MAHLE's total sales in 2014.
Thirteen Delphi Thermal production plants in Poland, Slovakia, Hungary, the United States, Mexico, Brazil, China, and India, as well as three major research and development centers in the United States and Luxembourg have now been added to the group's approximately 150 production locations. As a result of the takeover, the roughly 7,500 employees of Delphi Thermal are expected to bring the total number of MAHLE employees worldwide to over 75,000 by the end of 2015.
Group sales are rising just as sharply with the acquisition of Delphi Thermal: MAHLE anticipates total sales of around EUR 11.5 billion for 2015 provided that the global economic situation remains stable.
"By successfully concluding this takeover, we significantly improve our market position and move into positions 1–3 in the essential product segments of the thermal management business worldwide," explains Wolf-Henning Scheider, Chairman of the Management Board and CEO of the MAHLE Group since July 1, 2015. "Furthermore, by joining forces, new opportunities are arising for us. The Delphi Thermal portfolio ideally supplements our product range and systems competence. This also allows us to further expand our production footprint in Europe, North America, South America, and Asia." Dr. Jorg Stratmann, Head of the Thermal Management business unit and member of the Management Board of the MAHLE Group, adds: "Following the intensive preparation of the last weeks, we will now devote all our energy to the upcoming integration tasks. And we are looking forward to welcoming the new employees who will further strengthen our team with their expertise and experience. As the second largest global thermal supplier, we will now be able to offer our customers even better solutions."
In a subsequent step, it is intended to acquire the joint venture Shanghai Delphi Automotive Air-Conditioning System Co. Ltd. (SDAAC) located in China. The negotiating partners anticipate this separate transaction to be concluded in 2016.
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