Umicore wins in Delphi catalyst bid - at a price...Umicore wins in Delphi catalyst bid -
at a price
Umicore was the winning bidder in the
auction for Delphi Corporation’s automotive catalyst
business – after agreeing to up its bid by a whopping 35 per
cent. The transaction should be completed by the end of
September since regulatory and bankruptcy court clearance
have already been received.
Umicore agreed to a revised purchase price for the business of
$75 million, an increase of $19.4 million over its original
offer of $55.6 million. Aside from the purchase price all other
terms and conditions of the original offer remained unchanged.
Metal powders are finding an increasing role in the manufacture of vehicle catalysts as auto builders respond to regulatory demands for reduced emissions.
As part of the transaction, Umicore will acquire manufacturing and research facilities in Tulsa, Oklahoma, USA; Florange, France and Port Elizabeth, South Africa. Umicore will also acquire working capital of approximately $80 million, a complete customer book and intellectual property portfolio (more than 70 patents), as well as business activities and certain assets in China, Australia, Mexico and India. Existing test programs will continue to run in Bascharage (Luxembourg) and Flint (Michigan, US) under service agreements.
Based on a detailed integration plan which Umicore developed in recent weeks and reflecting the projected results of Delphi Catalyst and integration costs, the acquisition is expected to be slightly earnings dilutive to Umicore in the last quarter of 2007. It is anticipated that the acquisition will be earnings accretive in 2008 and generate earnings above the cost of capital thereafter.
* The Umicore group is to spend more than €40 million on the construction of a new Brazilian industrial facility in Americana, Sao Paulo, at the site of its automotive catalyst operations. It will house the technical materials, catalyst and other activities currently located at the company’s site 150km south in Guarulhos and will offer improved possibilities for further growth. Umicore is also to spend €4 million to move catalyst technology activities in Argentina to a new plant outside Buenos Aires by early 2008.
Metal powders are finding an increasing role in the manufacture of vehicle catalysts as auto builders respond to regulatory demands for reduced emissions.
As part of the transaction, Umicore will acquire manufacturing and research facilities in Tulsa, Oklahoma, USA; Florange, France and Port Elizabeth, South Africa. Umicore will also acquire working capital of approximately $80 million, a complete customer book and intellectual property portfolio (more than 70 patents), as well as business activities and certain assets in China, Australia, Mexico and India. Existing test programs will continue to run in Bascharage (Luxembourg) and Flint (Michigan, US) under service agreements.
Based on a detailed integration plan which Umicore developed in recent weeks and reflecting the projected results of Delphi Catalyst and integration costs, the acquisition is expected to be slightly earnings dilutive to Umicore in the last quarter of 2007. It is anticipated that the acquisition will be earnings accretive in 2008 and generate earnings above the cost of capital thereafter.
* The Umicore group is to spend more than €40 million on the construction of a new Brazilian industrial facility in Americana, Sao Paulo, at the site of its automotive catalyst operations. It will house the technical materials, catalyst and other activities currently located at the company’s site 150km south in Guarulhos and will offer improved possibilities for further growth. Umicore is also to spend €4 million to move catalyst technology activities in Argentina to a new plant outside Buenos Aires by early 2008.
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