Amphenol to Acquire FCI for $1.2 Billion
Amphenol Corporation has entered into exclusive negotiations and has made a binding offer to acquire 100% of the shares of FCI Asia Pte Ltd. for $1.275 billion (subject to a closing adjustment). FCI is a global leader in interconnect solutions for the telecom, datacom, wireless communications and industrial markets. FCI, headquartered in Singapore and owned by affiliates of Bain Capital, is expected to have 2015 sales and an adjusted EBITDA margin of approximately $600 million and 20%, respectively. FCI employs approximately 7,400 people worldwide.
â€œWe are extremely pleased by the prospect of adding FCI and their talented employees to the Amphenol family,â€ said R. Adam Norwitt, Amphenolâ€™s President and CEO. â€œFCI has enormous technological capabilities in the development of high-speed, input-output, power and miniaturized interconnect products. FCIâ€™s strong offering will allow us to deliver a much wider range of high technology solutions to our respective customers in a broad array of end markets.
â€œIn addition, we are excited about the possibilities created by the combination of Amphenolâ€™s strong operating discipline and FCIâ€™s advanced technologies and look forward to working together with FCIâ€™s experienced management team to drive superior operating performance in the future. Consistent with our acquisition strategy and assuming a continuation of current economic conditions, we expect the FCI acquisition to be accretive to earnings per share in the first year post acquisition, excluding acquisition related costs,â€ Norwitt concluded.
Completion of the transaction is subject to customary regulatory consents and approvals and acceptance of the binding offer by the seller, which can only occur after consultations with certain of FCIâ€™s worker councils. Amphenol expects to finance the acquisition through a combination of cash and debt and expects the transaction to close by the end of 2015.