Hellermanntyton soars as Delphi agrees £1.1bn takeover

HellermannTyton, the maker of cables and related products, has received a £1.07bn takeover approach from UK-based, US-listed car parts group Delphi Automotive.

Gillingham-based Delphi said the boards of the two companies had reached an agreement of 480p per share, which is a premium of 44.5% to the FTSE 250 company's closing share price on Wednesday and an enterprise value of $1.85bn.

The transaction is expected to close late in the fourth quarter of 2015, subject to regulatory approvals.

Delphi president and chief executive Kevin Clark said: "We are pleased to have reached this agreement with HellermannTyton, which will uniquely position Delphi to meet customer demand for customised cable management solutions and capitalise on additional growth opportunities in electrical architecture content."

He said the rationale for the deal was due to consumers now demanding more connectivity in their vehicles, which required electrical architecture as "the enabler".

"HellermannTyton positions Delphi to provide customers with an even broader portfolio of highly engineered and customized connection systems and cable management solutions."

Shares in HellermannTyton, which listed in London in March 2013, were up 41.82% to 471p by midday on Thursday.