TE Connectivity offers $2.1B for Deutsch Group
The Berwyn electronics components maker seeks to add a manufacturer of connectivity products for "harsh environments."
TE Connectivity offers $2.1B for Deutsch Group
Mike Armstrong, Inquirer Columnist
Berwyn-based TE Connectivity has offered to buy Deutsch Group SAS for 1.55 billion euros, or about $2.06 billion.
Most of the wire stories call TE Connectivity a Swiss company, which is correct to a point. But TE Connectivity CEO Tom Lynch and his top management team run the Switzerland-domiciled company from Chester County.
Even TE's recently filed annual report lists its principal offices in Berwyn "in a facility that we rent."
But I digress.
Deutsch Group, of New York, makes connectivity products for what the company calls "harsh environment" applications. Founded in 1938, the company is owned by France's Wendel and employs more than 3,500 people in nine countries.
If TE Connectivity does successfully seal the deal by the end of June 30, Deutsch Group would add about $670 million in annual revenues to the $14 billion in revenues TE Connectivity generated in its most recent year.
If the deal winds up blocked by regulators or doesn't close by September, TE Connectivity would need to pay a breakup fee of 50 million euros, or about $67 million.
On a conference call with financial analysts, Lynch said the acquisition was "not a move we did for a short-term play."
"These are great products in great industries that we don't have, and we took the opportunity to get them," Lynch said.
Shares of TE Connectivity were up 1 percent, or 36 cents, at $31.44 in late afternoon trading.
Blue Horseshoe loves TE Connectivity.— Bud Fox- @ Bud Fox- that would have been funny except that Deutsch Group SAS is the company getting bought.— cheesesteak17
- We're not fund managers, Cheeseteak, churn 'em and burn'em. I'm offering you the Knicks and chicks. God save you before you turn into poor Steeples over there.— Bud Fox
Mike Armstrong blogs about Philadelphia corporations and business-related topics. Contact him at 215-854-2980.
Reach Mike at marmstrong@phillynews.com.
