Delta Electronics, Inc., a global provider of power and thermal management solutions announced the signing of a definitive agreement to purchase, through its subsidiary - Delta International Holding Limited B.V., 100% shareholdings of HY&T Investments Holding B.V. and its subsidiaries, including TB&C Group, a provider of automotive high-voltage hybrid components, from Cooperatief H2 Equity Partners Fund IV Holding W.A. and Te Bokkel Beheer B.V. for 142 million euros (approx. NT$ 4,661,860 thousand).
Hybrid technologies
TB&C, with its operational headquarters in Germany, develops hybrid technologies for mechanical components applied in automotive, industrial, and medical applications. Its customer base includes world-class automotive companies, as well as tier-1 automotive suppliers.
It will generate synergies by leveraging both companies’ R&D and manufacturing to accelerate Delta’s EV expansion
The transaction is expected to enhance Delta’s EV battery management system (BMS) capabilities by integrating TB&C’s technologies with Delta’s Component Business Group’s automotive component product lines. It will also generate substantial synergies by leveraging both companies’ R&D and manufacturing resources to accelerate Delta’s overall EV business expansion.
EV powertrain solutions
Ping Cheng, the Chief Executive Officer (CEO) of Delta Electronics, said, "The accelerated growth of the global EV market is expected to help Delta’s overall business achieve its two-digit growth target over the next five years."
He adds, "Delta has successfully developed EV powertrain solutions for global major automotive companies, as well as automotive magnetic components, passive components, and thermal management solutions."
EV product portfolio expansion
Ping Cheng continues, "TB&C has remarkable capabilities and rich experience in the high-voltage hybrid components for EVs, which complement Delta's world-leading power electronics technology."
He further said, "With the addition of TB&C, Delta will be able to expand its EV product portfolio, while the collaboration between both companies will make our EV business scope even more comprehensive.“
E-mobility
Delta’s Component Business Group’s outstanding electronics components have been widely recognized"
Robert van der Weck, CEO of TB&C, said, “E-mobility is also the key strategic segment of our hybrid components and drives our sustainable growth going forward."
He adds, "In our focus areas in e-mobility, Delta’s Component Business Group’s outstanding electronics components have been widely recognized by global automotive companies."
innovative product offerings
Robert van der Weck continues, "We are happy to join Delta and believe the complementarity between Delta and TB&C in technologies will create synergies in developing innovative product offerings with higher added- value for our customers. Moreover, Delta’s capabilities in smart manufacturing and its economic scale will definitively enhance our overall competitiveness.”
Growth
Gert Jan van der Hoeven, Managing Partner of H2 Equity Partners added, “We are very proud of the transformation that has been accomplished under the leadership of management from a roof mechanism producer to a leading Tier 1 E-Mobility connectivity solutions provider. We are convinced that the Company will be able to accelerate growth even further in partnership with Delta."
R&D and sales
TB&C's core competence includes outsert technology, insert technology, over-molding
TB&C has excellent R&D and sales teams as well as manufacturing facilities in its operational headquarters in Germany. In addition, it has manufacturing bases in Mexico and Romania.
TB&C is an industry pioneer in hybrid components with core competence including outsert technology, insert technology, over molding, and multi-component injection molding.
Transaction details
Following the closing of the transaction, TB&C's executive management team will continue to lead the organization.
The closing of the transaction is subject to the satisfaction of certain closing conditions in the transaction agreement, including relevant regulatory approval.