=Delphi Technologies PLC (DLPH) to be acquired by BorgWarner (BWA) for $3.3 billion

Shares of Delphi Technologies PLC soared 61% Tuesday, after BorgWarner Inc. said it’s acquiring the company in all-stock deal with an enterprise value of about $3.3 billion.

BorgWarner (BWA), which makes parts for combustion, hybrid and electric vehicles, said Delphi shareholders will receive 0.4534 shares of its stock for each Delphi DLPH, +61.33%  share owned, equal to $17.39 a share in cash. That represents a 77% premium over Delphi stock’s closing price Monday. Upon closing, BorgWarner shareholders will own about 84% of the combined company, with Delphi shareholders owning the remaining 16%.

The deal is expected to strengthen BorgWarner’s power electronics business. Delphi specializes in propulsion technologies to make cars cleaner and more efficient. BorgWarner had sales of $10.17 billion in fiscal 2019, while Delphi had sales of $4.36 billion.

The deal is expected to be “meaningfully accretive” to adjusted EPS in the second full year after closing, which is expected to happen in the second half.

=Delphi Technologies (DLPH) reported earnings on Wed 9 May 2018 (b/o)

Delphi Technologies beats by $0.15, beats on revs; raises FY18 EPS and rev, in-line

• Reports Q1 (Mar) earnings of $1.30 per share, excluding non-recurring items, $0.15 better than the Capital IQ Consensus of $1.15; revenues rose 11.0% year/year to $1.3 bln vs the $1.24 bln Capital IQ Consensus. This reflects growth of 4% in Powertrain Systems and 1% in Delphi Technologies Aftermarket. It also reflects growth of 11% in Asia, 6% in North America, 6% in South America and relatively flat performance in Europe.
• Co issues in-line guidancefor FY18, sees EPS of $4.65-4.95 from $1.50-4.80, excluding non-recurring items, vs. $4.82 Capital IQ Consensus; sees FY18 revs of $5.0-5.2 bln from $4.9-5.1 bln vs. $5.08 bln Capital IQ Consensus Estimate.

=Delphi Automotive (DLPH) splits into Delphi Technologies & Aptiv (APTV)

Delphi Automotive PLC has completed the spin-off of its Powertrain segment into Delphi Technologies. The $4.5-billion independent spun-off entity has already started trading on the New York Stock Exchange as DLPH. Delphi Automotive, engaged in developing more connected electronics and safety solutions for a wide array of customers across the globe, will now be known as Aptiv (APTV).

Delphi Technologies, with 5,000 engineers, is built on the legacy of dishing out sophisticated propulsion solutions through combustion systems, software and controls and products electrification for customers across the globe. Liam Butterworth, the newly selected chief executive officer of Delphi Technologies, has said, “We are paving the way towards full electrification with our comprehensive technology portfolio, best-in-class cost structure and a balanced geographic manufacturing footprint with 20 manufacturing facilities and 12 technical centers on three continents.”

Delphi Technologies enjoys a balanced revenue mix, robust cost structure and veteran leadership. Also, the company is capable of complying with the strict automotive regulations, pertaining to lowering of the CO2 and other toxic emissions from combustion engines by a considerable amount.

Aptiv is in a position to solve complicated challenges embedded in greener, safer and more connected mode of transportation. The expertise in software and vehicle architecture will aid in automated driving, improved safety, better user experience, and connected services.

=Delphi Automotive (DLPH) reported earnings on Wed 2 Nov 2016 (b/o)

Delphi Automotive beats by $0.07, beats on revs; raises FY16 EPS, revs guidance :

• Reports Q3 (Sep) earnings of $1.50 per share, $0.07 better than the Capital IQ Consensus of $1.43; revenues rose 12.7% year/year to $4.09 bln vs the $3.99 bln Capital IQ Consensus.
• "Adjusted Operating Income margin increased 10 basis points in the third quarter of 2016 to 13.0%, compared with 12.9% in the prior year period, resulting from the continued above-market growth of our businesses in Europe, North America and Asia Pacific, increased earnings from the December 2015 acquisition of HellermannTyton and the impact of cost reduction initiatives, including our continuing rotation to low cost manufacturing locations in Europe."
• Co raises guidance for FY16, sees EPS of $6.00-6.10 (Prior $5.95-6.05) vs. $5.98 Capital IQ Consensus Estimate; sees FY16 revs of $16.4-16.5 bln (Prior $16.25-16.45 bln) vs. $16.44 bln Capital IQ Consensus Estimate.