Delphi in Gillingham completes sale of thermal business to MAHLE

Delphi, the car and van technology giant, has sold its thermal business to German engineering company MAHLE for $727 million (£466 million).

The Gillingham-based firm first announced its intension to sell the division in February, which it says will allow it to focus on high-growth areas of its business.

Stuttgart-based MAHLE, another technology developer for the automotive and engine industry, is also due to buy Delphi’s air-conditioning arm Shanghai Delphi Automotive Air-Conditioning System Co next year.

Delphi's headquarters in Gillingham
Delphi's headquarters in Gillingham

The thermal division posted revenues of $1.6 billion last year and employs about 7,500 employees at 13 plants globally.

Delphi president and chief executive Kevin P Clark said: “The sale of our wholly-owned thermal business to MAHLE is a great outcome for all involved.

“MAHLE is a world leader in providing automotive thermal systems and will now be positioned to provide even more opportunities for its employees and more value to its customers in what has been a very strong business.

“For Delphi, this transaction strategically positions us to focus on the high-growth sectors of powertrain, electronics & safety and electrical/electronic architecture, addressing industry trends for safe, green and connected vehicles.”

Barclays is serving as Delphi’s financial advisor and Latham & Watkins LLP is serving as its legal counsel.

Delphi operates technical centers, manufacturing sites and customer support services in 33 countries, employing more than 164,000 people.

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