Bain Capital to Purchase TI Automotive

Published By : 29 Jan 2015 | Published By : QYRESEARCH

Bain Capital has decided to purchase TI Automotive, an almost 100 year old auto parts manufacturer, after two earlier attempts to hit a deal between the two. Terms of the agreement that was announced on Tuesday, Jan. 27, 2015, were not revealed. The current owners consist of the Oak tree Capital Management that acquired the organization with other investors in 2007.

Bain Capital, the Boston based  private equity biggie, has invested in a number of auto parts providers over the years, consisting of FTE Automotive of Germany and Sensata Technologies of the Netherlands. The company had tried to purchase TI Automotive in 2011 and 2013, but both the sides could not make a decision on worth, as reported in the media.

The auto parts industry has proved a productive ground for deal-making. The previous year, the Blackstone Group procured the Gates Corporation for US$5.4 billion, which is a manufacturer of automotive and industrial parts. A couple of months later, the auto safety parts manufacturer, TRW Automotive, stated that it would be purchased by the German auto parts producer, ZF Friedrichshafen, in a US$13.5 billion deal.

TI Automotive, situated in Auburn Hills, Mich., produces equipment for handling fuel and brake fluid, containing tubing, tanks, and pumps. It has units in 29 nations. Bain Capital stated that the organizations present management team would persist to lead it. The firm traces back its history to 1919, when it was started as Tube Investments in Birmingham, England, according to the company’s website.

In the year 2000, it combined with Smiths Industries, and the present TI Automotive was spun off the forthcoming year. Bain Capital estimates its acquirement to complete by the mid of current year. The company stated a majority of TI Automotive shareholders had assured to support the acquisition.
Back To Top