Canada’s ABC Technologies to acquire British TI Fluid for $1.32 bn

Toronto-based manufacturer ABC Technologies is acquiring British TI Fluid for $1.32 billion.

With more than 11,000 employees, ABC Technologies manufactures and supplies custom, highly- engineered, technical plastics, to the North American light vehicle industry.

TI Fluid Systems is a London-listed, market leading global manufacturer of thermal and fluid system solutions for a full range of current and developing vehicle architectures.

Under the terms of the transaction, shareholders of TI Fluid Systems will be entitled to receive 200 pence a share, valuing TI Fluid Systems at an enterprise value of approximately £1,831 million.

With the takeover of TI Fluid, which currently operates across 27 countries, ABC Technologies seeks to expand both firms’ global footprint while bolstering its product portfolio in order to attract a broader range of customers, including automotive OEMs and Tier One suppliers worldwide.

Terry Campbell, president and chief executive at ABC Technologies said the transaction represents a transformative strategic opportunity which will unlock value for stakeholders and accelerates growth.

“A combined business will enable us to better serve our customers, and I am excited for our teammates as we continue to build a winning future,” he said, adding that the firm will be looking for further acquisitions in the future.

“We will be persistent in seeking alignment with organisations that have proven capabilities to further ABC’s success story,” he said.

The initial deadline for the sale offering was postponed to 22 November at the request of ABC. TI Fluid Systems shares were up 1.8 per cent at 184.00 pence each last Friday afternoon in London.

On Thursday last week, ABC Technologies asked for a further extension ‘to allow the financing and other arrangements to be finalised’. The company added that it ‘has substantially completed its due diligence’ and was reconfirming the possible offer price.

The acquisition is currently expected to complete in the first half of 2025, subject to shareholder and other relevant legal and regulatory approvals.

ABC Technologies is backed by Apollo Global Management, which acquires 51 per cent of the Canadian manufacturer’s shares in April 2021.